Türk Hava Yollari Anonim Ortakligi : 2024 3 Months Financial Statements - USD

TÜRK HAVA YOLLARI ANONİM

ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim

Financial Statements As at and For

The Three-Month Period

Ended 31 March 2024

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

ASSETS	Notes		31 March 2024		31 December 2023
Non-Current Assets
Financial Investments	6	541	398
Other Receivables
-Third Parties	9	1,320	1,395
Investments Accounted for Using Equity Method	3	513	497
Investment Property		43	43
Property and Equipment	11	6,229	6,075
Right of Use Assets	11	17,056	16,928
Intangible Assets
- Other Intangible Assets	12	91	87
- Goodwill		27	27
Prepaid Expenses		1,412	1,294
Deferred Tax Asset	25	346	332
TOTAL NON-CURRENT ASSETS		27,578	27,076
Current Assets
Cash and Cash Equivalents	5	841	683
Financial Investments	6	4,825	5,344
Trade Receivables
-Related Parties	8	47	50
-Third Parties		943	806
Other Receivables
-Related Parties	8	9	9
-Third Parties	9	826	880
Derivative Financial Instruments	27	70	18
Inventories		454	418
Prepaid Expenses		382	237
Current Income Tax Assets	25	38	41
Other Current Assets		100	109
TOTAL CURRENT ASSETS			8,535		8,595
TOTAL ASSETS
	36,113	35,671

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

LIABILITIES AND EQUITY		Notes	31 March 2024		31 December 2023
Equity
Share Capital	18		1,597	1,597
Treasury Shares	18		(33)	(33)
Items That Will Not Be Reclassified to
Profit or Loss
-Actuarial Losses on Retirement Pay Obligation	18		(269)	(274)
Items That Are or May Be Reclassified to
Profit or Loss
-Foreign Currency Translation Differences	18		(227)	(221)
-Fair Value Gains on Hedging Instruments
Entered into for Cash Flow Hedges	18		508	281
-Losses on Remeasuring FVOCI				9	21
Restricted Profit Reserves	18		69	69
Previous Years Profit				14,118	8,097
Net Profit for the Period				226		6,021
Equity of the Parent				15,998	15,558
Non-Controlling Interests				4	5
TOTAL EQUITY				16,002	15,563
Non-Current Liabilities
Long-Term Borrowings	7		144	472
Long-Term Lease Liabilities	7 and 13	9,919	10,052
Other Payables
-Third Parties				37	25
Deferred Income	10		169	108
Long-Term Provisions
-Provisions for Employee Termination Benefits	16		213	229
-Other Provisions				82	85
Deferred Tax Liability	25		68		50
TOTAL NON-CURRENT LIABILITIES				10,632	11,021
Current Liabilities
Short-Term Borrowings	7		1,170	1,345
Short-Term Portion of Long-Term Borrowings	7		412	618
Short-Term Portion of Lease Liabilities	7 and 13	1,694	1,760
Trade Payables
-Related Parties	8		264	285
-Third Parties				1,094	1,006
Payables Related to Employee Benefits				423	418
Other Payables
-Related Parties	8		2	4
-Third Parties				191	238
Derivative Financial Instruments	27		29	101
Deferred Income	10		3,631	2,705
Current Tax Provision	25		36	39
Short-Term Provisions
-Provisions for Employee Benefits	14		85	50
-Other Provisions	14		7	6
Other Current Liabilities				441		512
TOTAL CURRENT LIABILITIES				9,479	9,087
TOTAL LIABILITIES AND EQUITY				36,113	35,671

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

			1 January -		1 January -
PROFIT OR LOSS	Notes		31 March 2024		31 March 2023
Revenue	19	4,769	4,353
Cost of Sales (-)	20		(4,245)		(3,705)
GROSS PROFIT			524		648
General Administrative Expenses (-)	21	(108)	(98)
Selling and Marketing Expenses (-)	21	(444)	(416)
Other Operating Income	22	111	129
Other Operating Expenses (-)	22	(41)	(149)
OPERATING PROFIT BEFORE
INVESTMENT ACTIVITIES			42		114
Income from Investment Activities	23	310	151
Expenses for Investment Activities	23	(2)	(12)
Share of Investments' Profit / (Loss) Accounted
for Using The Equity Method	3		2		(12)
OPERATING PROFIT			352		241
Financial Income	24	195	357
Financial Expenses (-)	24		(379)		(322)
PROFIT BEFORE TAX			168		276
Tax Expense		58	(43)
Current Tax Income / (Expense)	25	-	(4)
Deferred Tax Income / (Expense)	25		58		(39)
NET PROFIT FOR THE PERIOD		226	233
OTHER COMPREHENSIVE INCOME
Items That May Be Reclassified Subsequently To
Profit or Loss		209	65
Currency Translation Adjustment		(6)	(9)
(Losses) / Gains on Investments Remeasured FVOCI		(12)	5
Fair Value Gains on Hedging Instruments
Entered into for Cash Flow Hedges		268	100
Fair Value Gains / (Losses) Hedging Instruments of
Investment Accounted by Using the Equity Method
Entered into for Cash Flow Hedges		16	(12)
Related Tax of Other Comprehensive Income		(57)	(19)
Items That Will Not Be Reclassified Subsequently
To Profit or Loss		5	(2)
Actuarial Gains / (Losses) on Retirement Pay
Obligation		6	(3)
Related Tax of Other Comprehensive Income		(1)	1
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD		214	63
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD		440	296
Basic Earnings Per Share (Full US Cents)	26	0.16	0.17
Diluted Earnings Per Share (Full US Cents)	26	0.16	0.17

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim Statement of Changes in Equity

For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
			Items That Will Not
			Be Reclassified
			Subsequently To	Items That May Be Reclassified Subsequently
			Profit or Loss		To Profit or Loss			Retained Earnings
					Fair Value Gains
					on Hedging
				Foreign	Instruments						Equity
			Actuarial Losses	Currency	Entered Into For		Gains on	Restricted	Previous	Net Profit	Holders	Non-
	Share	Treasury	Retirement Pay	Translation	Cash Flow		Remeasuring	Profit	Years	for The	of the	controlling	Total
	Capital	Shares	Obligation	Differences	Hedges		FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2024	1,597	(33)	(274)	(221)	281		21	69	8,097	6,021	15,558	5	15,563
Transfers	-	-	-	-	-		-	-	6,021	(6,021)	-	-	-
Total comprehensive income	-	-	5	(6)	227		(12)	-	-	226	440	-	440
Transactions with non-
controlling interests	-	-	-	-	-		-	-	-	-	-	(1)	(1)
As of 31 March 2024	1,597	(33)	(269)	(227)	508		9	69	14,118	226	15,998	4	16,002
			Items That Will Not
			Be Reclassified
			Subsequently To	Items That May Be Reclassified Subsequently
			Profit or Loss		To Profit or Loss			Retained Earnings
					Fair Value Gains
					on Hedging
				Foreign	Instruments						Equity
			Actuarial Losses	Currency	Entered Into For		Losses on	Restricted	Previous	Net Profit	Holders	Non-
	Share	Treasury	Retirement Pay	Translation	Cash Flow		Remeasuring	Profit	Years	for The	of the	controlling	Total
	Capital	Shares	Obligation	Differences	Hedges		FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2023	1,597	-	(228)	(294)	515		(14)	36	5,405	2,725	9,742	-	9,742
Transfers	-	-	-	-	-		-	16	2,709	(2,725)	-	-	-
Total comprehensive income	-	-	(2)	(9)	70		4	-	-	233	296	-	296
Increase through treasury share
transactions	-	(16)	-	-	-		-	-	-	-	(16)	-	(16)
Transactions with non-
controlling interests	-	-	-	-	-		-	-	-	-	-	3	3
As of 31 March 2023	1,597	(16)	(230)	(303)	585		(10)	52	8,114	233	10,022	3	10,025

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Cash Flows

For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

	Notes
Net Profit for the Period
Adjustments to Reconcile Profit
Adjustments for Depreciation and Amortisation Expense	11 and 12
Adjustments for Provisions Related to Employee Benefits	14 and 16
Adjustments for Provisions for Other Accruals	14
Adjustments for Reversal of Probable Risks
Adjustments for Interest Income	23 and 24
Adjustments for Interest Expense	16 and 24
Adjustments for Unrealised Foreign Exchange (Gains) / Losses
Adjustments for Fair Value Losses / (Gains) on Derivative
Financial Instruments	24
Adjustments for Fair Value Losses
Adjustments for Undistributed Losses of Associates	3
Adjustments for Tax (Income) / Expense	25
Adjustments for Gains Arised from Sale of Tangible Assets	23
Adjustments for Losses Arised from Sale of Other Non-Current Assets	11
Operating Profit Before Changes in Working Capital
Decrease / (Increase) in Trade Receivables from Related Parties	8
(Increase) / Decrease in Trade Receivables from Third Parties
Decrease / (Increase) in Other Receivables from Third Parties	9
Adjustments for Increase in Inventories
Adjustments for Increase in Prepaid Expenses
Decrease in Trade Payables to Related Parties	8
Increase in Trade Payables to Third Parties
Adjustments for Increase in Payables Due to
Employee Benefits
Decrease in Other Payables to Related Parties	8
(Decrease) / Increase in Other Payables to Third Parties
Increase in Deferred Income	10
Decrease / (Increase) in Other Assets
Cash Flows From Operations
Payments for Provisions Related with Employee Benefits	16
Income Taxes (Paid) / Received	25
Net Cash From Operating Activities
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Proceeds From Sales of Property, Plant and Equipment and Intangible Assets
Payments For Purchasing of Property, Plant and Equipment and Intangible
Assets	11 and 12
Proceeds / (Payments) For Purchasing of Other Financial Assets	6
Other Cash Advances and Loans	9
Dividends Received	3
Interest Received	23
Net Cash Flows Used In Investing Activities
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
Payments to Acquire Entity's Shares
Proceeds From Loans	7
Repayments of Loans	7
Payments of Lease Liabilities	7
Interest Paid
Interest Received	24
Other Cash Outflows
Net Cash Used in Financing Activities
Net Change in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD	5

31 March 2024		31 March 2023
226	233
531	497
48	22
2	1
(1)	5
(304)	(154)
148	122
(329)	464
61	(180)
159	-
(2)	12
(61)	43
(1)	(11)
8		13
485	1,067
3	(4)
(138)	90
93	(81)
(28)	(9)
(263)	(197)
(21)	(23)
88	49
5	27
(2)	(7)
(35)	37
914	565
9		(18)
1,110	1,496
(5)	(4)
(3)		12
1,102		1,504
2	20

1. (457)

217	(2,149)
(20)	(36)
16	-
213		74
175		(2,548)
-	(16)
1,044	968
(1,680)	(923)

1. (428)

(136)	(95)
63	79
-		3
(1,147)		(412)
130		(1,456)

1. 4,066

1. 2,610

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

As At And For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

1. GROUP ORGANIZATION AND ITS OPERATIONS

Türk Hava Yolları Anonim Ortaklığı (the "Company" or "THY") was incorporated in Türkiye in 1933. As of 31 March 2024, and 2023, the shareholders and their respective shareholdings in the Company are as follows:

	31 March 2024		31 December 2023
Türkiye Wealth Fund	49.12 %	49.12 %
Republic of Türkiye Ministry of Treasury and
Finance Privatization Administration	-	-
Other (publicly held and tresuary share)	50.88 %	50.88 %
Total	100.00 %	100.00 %

The Company is controlled by Türkiye Wealth Fund.

The number of employees working for the Group as of 31 March 2024 is 57,991 (31 December 2023: 55,884). The average number of employees working for the Group for the period ended 31 March 2024 and 2023 are 57,390 and 51,753 respectively. The Group is registered in İstanbul, Türkiye and its registered head office address is as follows:

Türk Hava Yolları A.O. Genel Yönetim Binası, Yeşilköy Mahallesi, Havaalanı Caddesi No: 3/1 34149 Bakırköy İSTANBUL.

The Company's shares have been traded on Borsa İstanbul ("BIST") since 1990. The Company and its subsidiaries will be referred to as "Group".

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

As At And For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

1. GROUP ORGANIZATION AND ITS OPERATIONS (cont'd) Subsidiaries and Joint Ventures

The table below sets out the consolidated subsidiaries of the Group as of 31 March 2024 and 2023:

Name of the Company

THY Teknik A.Ş.

(Turkish Technic)

THY Uçuş Eğitim ve Havalimanı İşletme A.Ş. (TAFA)

THY Uluslararası Yatırım ve Taşımacılık A.Ş.

THY Teknoloji ve Bilişim A.Ş. (Turkish Technology)

THY Hava Kargo Taşımacılığı A.Ş. (Widect)

THY Destek Hizmetleri A.Ş. (TSS)

THY Özel Güvenlik ve Koruma Hizmetleri A.Ş.

AJet Hava Taşımacılığı A.Ş. (AJET)

THY Finansal Teknolojiler A.Ş. (TKPAY)

TCI Kabin İçi Sistemleri San ve Tic. A.Ş. (TCI)

TSI Seats INC

	Ownership Rate	Country of
Principal Activity	31 March 2024	31 December 2023	Registration
Aircraft Maintenance
Services	100%	100%	Türkiye
Training & Airport
Operations	100%	100%	Türkiye
Cargo and Courier
Transportation	100%	100%	Türkiye
Information Technologies
and Consulting	100%	100%	Türkiye
Cargo Transportation	100%	100%	Türkiye
Support Services	100%	100%	Türkiye
Security Services	100%	100%	Türkiye
Air Transportation	100%	100%	Türkiye
Payment Services	100%	100%	Türkiye
Cabin Interior Products	80%	80%	Türkiye
Cabin Interior Products	80%	80%	USA

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements

As At And For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

1. GROUP ORGANIZATION AND ITS OPERATIONS (cont'd) Subsidiaries and Joint Ventures (cont'd)

The table below sets out the joint ventures of the Group as of 31 March 2024 and 2023:

Company Name

Güneş Ekspres Havacılık A.Ş. (Sun Express)

THY DO&CO İkram Hizmetleri A.Ş. (Turkish DO&CO)

TGS Yer Hizmetleri A.Ş. (TGS)

THY OPET Havacılık Yakıtları A.Ş. (THY Opet)

P&W T.T. Uçak Bakım Merkezi Ltd. Şti. (TEC)

Air Albania SHPK (Air Albania)

We World Express Ltd. (We World Express)

Goodrich Thy Teknik Servis Merkezi Ltd. Şti. (TNC) (Goodrich)

TFS Akaryakıt Hizmetleri A.Ş. (TFS Akaryakıt)

		Ownership Share and Voting Power
Country of
Registration and
Operations		31 March 2024		31 December 2023
Türkiye	50%	50%
Türkiye	50%	50%
Türkiye	50%	50%
Türkiye	50%	50%
Türkiye	49%	49%
Albania	49%	49%
Hong Kong	45%	45%
Türkiye	40%	40%
Türkiye	25%	25%

Principal Activity

Aircraft

Transportation

Catering Services

Ground Services

Aviation Fuel

Services

Maintenance

Services

Aircraft

Transportation

Cargo and Courier

Transportation

Maintenance

Services

Aviation Fuel

Services

The Group owns 49%, 49%, 45%, 40% and 25% of equity shares of TEC, Air Albania, We World Express, Goodrich and TFS Akaryakıt respectively. However, based on the contractual arrangements between the Group and the other respective investors, decisions about the relevant activities of the arrangements require both the Group and the other shareholders according to the respective investor agreements. Thus, TEC, Air Albania, We World Express, Goodrich and TFS Akaryakıt are controlled jointly by the Group and other shareholders.

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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

As At And For the Three-Month Period Ended 31 March 2024

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation Statement of Compliance

The condensed consolidated interim financial statements as at and for the three-month period ended 31 March 2024 have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for complete annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2023.

Board of Directors has approved the condensed consolidated interim financial statements as of 31 March 2024 on 22 May 2024. General Assembly and the related regulatory bodies have the authority to modify the statutory financial statements.

Basis of Preparation

The consolidated financial statements, except for some financial instruments that are stated at fair value, have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods or services.

Functional and Reporting Currency

Functional currency

The consolidated financial statements of the Group are presented in USD, which is the functional currency of the Company. Details of the functional currencies of the subsidiaries of the Company are as follows;

Subsidiaries		Functional currencies
Turkish Technic		USD
TAFA		USD
THY Uluslararası Yatırım ve Taşımacılık A.Ş.		USD
THY Technology		TL
Widect		USD
TSS		TL
THY Özel Güvenlik ve Koruma Hizmetleri A.Ş.		TL
AJET		USD
TKPAY		TL
TCI		USD
TSI Seats INC		USD

Although the currency of the country in which the Company is domiciled is Turkish Lira ("TL"), the Company's functional currency is determined as USD. USD is used to a significant extent in, and has a significant impact on the operations of the Company and reflects the economic substance of the underlying events and circumstances relevant to the Company. Therefore, the Company uses USD in measuring items in its financial statements and as the functional currency. All currencies other than those selected for measuring items in the consolidated financial statements are treated as foreign currencies. Accordingly, transactions and balances not already measured in USD have been remeasured in USD in accordance with the relevant provisions of IAS 21, "the Effects of Changes in Foreign Exchange Rates".

Except where otherwise indicated, all amounts disclosed in financial statements and notes are rounded the nearest million (USD 000,000).

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