2020 6 Months Financial Statements Usd Imzali

TÜRK HAVA YOLLARI ANONİM
ORTAKLIĞI AND ITS SUBSIDIARIES
Condensed Consolidated Interim

Financial Statements As at and For
The Six-Month Period
Ended 30 June 2020
TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Condensed Consolidated Interim Balance Sheet as at 30 June 2020
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Reviewed Audited
ASSETS Notes 30 June 2020 31 December 2019
Non-Current Assets
Financial Investments 6 85 90
Other Receivables
-Third Parties 10 1,042 1,276
Investments Accounted for Using Equity Method 3 255 369
Property and Equipment 12 18,200 17,261
Intangible Assets
- Other Intangible Assets 13 90 82
- Goodwill 12 12
Prepaid Expenses 883 864
TOTAL NON-CURRENT ASSETS 20,567 19,954
Current Assets
Cash and Cash Equivalents 5 1,761 2,075
Financial Investments 6 15 400
Trade Receivables
-Related Parties 9 7 -
-Third Parties 270 540
Other Receivables
-Related Parties 9 - 28
-Third Parties 10 1,477 1,053
Derivative Financial Instruments 28 50 52
Inventories 330 290
Prepaid Expenses 134 149
Current Income Tax Assets 26 27 43
Other Current Assets 104 140
TOTAL CURRENT ASSETS 4,175 4,770
TOTAL ASSETS 24,742 24,724
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Condensed Consolidated Interim Balance Sheet as at 30 June 2020
Reviewed Audited
LIABILITIES Notes 30 June 2020 31 December 2019
Equity
Share Capital 19 1,597 1,597
Items That Will Not Be Reclassified to
Profit or Loss
-Actuarial (Losses) on Retirement Pay Obligation 19 ( 45) ( 38)
Items That Are or May Be Reclassified to
Profit or Loss
-Foreign Currency Translation Differences 19 ( 203) ( 184)
-Fair Value Gains on Hedging Instruments
19
Entered into for Cash Flow Hedges ( 48) 171
-Gains on Remeasuring FVOCI 19 ( 4) ( 1)
Restricted Profit Reserves 19 72 67
Previous Years Profit 19 5,246 4,463
Net (Loss) / Profit for the Period ( 654) 788
Equity of the Parent 5,961 6,863
Non-Controlling Interests 1 1
TOTAL EQUITY 5,962 6,864
Non- Current Liabilities
Long-Term Borrowings 7 and 14 9,292 8,995
Long Term Lease Liabilities 7 and 14 1,423 1,271
Other Payables
Deferred Income 11 114 120
Long-Term Provisions
-Provisions for Employee Benefits 17 133 135
-Other Provisions 50 45
Deferred Tax Liability 26 1,266 1,293
TOTAL NON-CURRENT LIABILITIES 12,302 11,896
Current Liabilities
Short Term Borrowings 7 1,567 1,241
Short-Term Portion of Long-Term Borrowings 7 and 14 1,992 1,609
Short Term Portion of Lease Liabilities 7 and 14 285 256
Other Financial Liabilities 8 1 19
Trade Payables
-Related Parties 9 240 172
Payables Related to Employee Benefits 63 160
Other Payables
Derivative Financial Instruments 28 224 70
Deferred Income 11 918 1,071
Short-Term Provisions
-Provisions for Employee Benefits 15 45 39
-Other Provisions 15 11 13
Other Current Liabilities 293 258
TOTAL CURRENT LIABILITIES 6,478 5,964
TOTAL LIABILITIES AND EQUITY 24,742 24,724
2
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
For the Six-Month Period Ended 30 June 2020
Reviewed Not Reviewed Reviewed Not Reviewed

1 January - 1 April - 1 January - 1 April -
PROFIT OR LOSS Notes 30 June 2020 30 June 2020 30 June 2019 30 June 2019
Revenue 20 3,434 901 5,949 3,181
Cost of Sales (-) 21 ( 3,474) ( 1,000) ( 5,257) ( 2,753)
GROSS (LOSS) / PROFIT ( 40) ( 99) 692 428
General Administrative Expenses (-) 22 ( 116) ( 45) ( 145) ( 73)
Selling and Marketing Expenses (-) 22 ( 376) ( 88) ( 740) ( 345)
Other Operating Income 23 118 78 100 45
Other Operating Expenses (-) 23 ( 28) 36 ( 42) ( 40)
OPERATING (LOSS) / PROFIT BEFORE
INVESTMENT ACTIVITIES ( 442) ( 118) ( 135) 15
Income from Investment Activities 24 91 52 87 57
Expenses from Investment Activities 24 - - ( 79) ( 52)
Share of Investments' Loss Accounted
by Using The Equity Method 3 ( 91) ( 74) 8 23
OPERATING (LOSS) / PROFIT ( 442) ( 140) ( 119) 43
Financial Income 25 46 28 26 12
Financial Expenses (-) 25 ( 274) ( 136) ( 223) ( 88)
LOSS BEFORE TAX ( 670) ( 248) ( 316) ( 33)
Tax Income 16 ( 79) 113 59
Current Tax Expense 26 - - ( 4) 5
Deferred Tax Income 26 16 ( 79) 117 54
NET (LOSS) / PROFIT FOR THE PERIOD ( 654) ( 327) ( 203) 26
3
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
Reviewed Not Reviewed Reviewed Not Reviewed

OTHER COMPREHENSIVE INCOME Notes 30 June 2020 30 June 2020 30 June 2019 30 June 2019
Items That May Be Reclassified Subsequently To

Profit or Loss ( 241) ( 49) 63 ( 129)
Currency Translation Adjustment ( 19) ( 9) ( 10) -
Losses on Remeasuring FVOCI ( 4) 9 2 3
Fair Value (Losses) / Gains on Hedging Instruments
Entered into for Cash Flow Hedges ( 265) ( 64) 90 ( 162)
Fair Value (Losses) / Gains Hedging Instruments of
Investment Accounted by Using the Equity Method
Entered into for Cash Flow Hedges ( 13) 7 1 ( 4)
Related Tax of Other Comprehensive Income 60 8 ( 20) 34
Items That Will Not Be Reclassified Subsequently
To Profit or Loss ( 7) ( 6) ( 4) ( 5)
Actuarial (Losses) / Gains on Retirement
Pay Obligation ( 8) ( 7) ( 5) ( 6)
Related Tax of Other Comprehensive Income 1 1 1 1
OTHER COMPREHENSIVE (EXPENSE) / INCOME
FOR THE PERIOD ( 248) ( 55) 59 ( 134)
TOTAL COMPREHENSIVE EXPENSE
FOR THE PERIOD ( 902) ( 382) ( 144) ( 108)
Basic Loss Per Share (Full US Cents) 27 ( 0.47) ( 0.24) ( 0.15) 0.02
Diluted Loss Per Share (Full US Cents) 27 ( 0.47) ( 0.24) ( 0.15) 0.02
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Condensed Consolidated Interim Statement of Changes in Equity
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 Gains / Net Gain / Equity
Actuarial (Losses) Currency Entered Into For (Losses) on Restricted Previous (Loss) Holders Non-
Share Retirement Pay Translation Cash Flow Remeasuring Profit Years for The of the controlling Total
Capital Obligation Differences Hedges FVOCI Reserves Profit Period Parent Interests Equity
As of 1 January 2020 1,597 (38) (184) 171 (1) 67 4,463 788 6,863 1 6,864
Transfers - - - - - - 788 (788) - - -
Total comprehensive income - (7) (19) (219) (3) 5 (5) (654) (902) - (902)
As of 30 June 2020 1,597 (45) (203) (48) (4) 72 5,246 (654) 5,961 1 5,962
5
Condensed Consolidated Interim Statement of Changes in Equity
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 Gains / Net Gain / Equity
Actuarial (Losses) Currency Entered Into For (Losses) on Restricted Previous (Loss) Holders Non-
Share Retirement Pay Translation Cash Flow Remeasuring Profit Years for The of the controlling Total
Capital Obligation Differences Hedges FVOCI Reserves Profit Period Parent Interests Equity
As of 1 January 2019 1,597 (35) (160) - (6) 36 3,760 753 5,945 - 5,945
Adjustment on initial application
of IFRS 16 - - - - - - (18) - (18) - (18)
As of 1 January 2019 1,597 (35) (160) - (6) 36 3,742 753 5,927 - 5,927
Transfers - - - - - - 753 (753) - - -
Total comprehensive income - (4) (10) 71 2 - - (203) (144) - (144)
As of 30 June 2019 1,597 (39) (170) 71 (4) 36 4,495 (203) 5,783 - 5,783
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Condensed Consolidated Interim Statement of Cash Flows
Reviewed Reviewed
Notes 30 June 2020 30 June 2019
Net Loss for the period (654) (203)
Adjustments to Reconcile Loss
Adjustments for Depreciation and Amortisation Expense 12 and 13 813 736
Adjustments for Provisions Related with Employee Benefits 15 and 17 19 24
Adjustments for Provisions for Payables (1) ( 2)
Adjustments for Reversal of Probable Risks 10 8
Adjustments for Interest Income 24 and 25 (15) (51)
Adjustments for Interest Expense 17 and 25 153 133
Adjustments For Unrealised Foreign Exchange Gains (2) (142)
Adjustments for Fair Value (Gains) / Losses on Derivative
Financial Instruments 25 (13) 16
Adjustments for Undistributed Losses / (Gains) of Associates 3 91 (8)
Adjustments for Tax Income 26 (16) (113)
Adjustments for (Gains) / Losses Arised From Sale of Tangible Assets 24 (2) 76
Adjustments for Losses Arised from Sale of
Other Non-Current Assets 12 17 24
Operating Profit Before Changes in Working Capital 400 498
(Increase) / Decrease in Trade Receivables from Related Parties (7) 1
Decrease / (Increase) in Trade Receivables from Non Related Parties 264 (116)
Decrease in Other Related Party Receivables Related with Operations 9 28 -
(Increase) / Decrease in Other Non-Related Party Receivables
Related with Operations 10 (220) 18
Adjustments for Increase in Inventories (40) (64)
Adjustments for Increase in Prepaid Expenses (4) (118)
Increase / (Decrease) in Trade Payables to Related Parties 9 68 (125)
(Decrease) / Increase in Trade Payables to Non-Related Parties (213) 105
Adjustments for Decrease in Payables Due to
Employee Benefits (97) (18)
Increase in Other Operating Payables to
Non-Related Parties 36 160
(Decrease) / Increase in Deferred Income 11 (129) 818
Decrease / (Increase) in Other Assets Related with Operations 36 (24)
Cash Flows From Operations 122 1,135
Payments for Provisions Related with Employee Benefits 17 (6) (5)
Income taxes (paid) 26 (16) (37)
Net Cash From Operating Activities 100 1,093
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Cash Receipts Proceed From Sales of Property, Plant and Equipment 3 20
Cash Payments From Purchasing of Property, Plant and Equipment (*) 12 and 13 (625) (685)
Cash Receipts From Sales of Other Long-term Assets 6 390 10
Other Cash Advances and Loans 12 30 (302)
Dividends Received 3 -
Interest Received 24 and 25 15 51
Net Cash Flows Used In Investing Activities ( 184) ( 906)
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
Proceeds From Loans 7 1,185 1,040
Payments of Loans (556) (754)
Payments of Finance Lease Liabilities ( 564) (469)
Payments of Lease Liabilities ( 160) ( 166)
Interest Paid ( 117) (115)
Other Cash (Outflows) / Inflows 8 (18) 13
Net Cash Used in Financing Activities ( 230) ( 451)
Net Change in Cash and Cash Equivalents ( 314) ( 264)
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD 2,075 1,636
CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD 5 1,761 1,372
(*) USD 1,153 portion of property and equipment and intangible assets purchases in total of USD 1,778 for the period ended 30 June
2020 was acquired through leases. (30 June 2019: USD 590 portion of property and equipment and intangible assets purchases in
total of USD 1,275 was acquired through leases.)
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Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Six-Month Period Ended 30 June 2020
1. GROUP ORGANIZATION AND ITS OPERATIONS

Türk Hava Yolları Anonim Ortaklığı (the “Company” or “THY”) was incorporated in Turkey in 1933. As
of 30 June 2020 and 31 December 2019, the shareholders and their respective shareholdings in the
Company are as follows:
30 June 2020 31 December 2019

Turkey Wealth Fund 49.12 % 49.12 %
Republic of Turkey Treasury and Finance
Ministry Privatization Administration - -
Other (publicly held) 50.88 % 50.88 %
Total 100.00 % 100.00 %
The number of employees working for the Group as of 30 June 2020 is 39,020 (31 December 2019:
38,849). The average number of employees working for the Group for the periods ended 30 June 2020 and
2019 are 39,021 and 36,964 respectively. The Group is registered in İstanbul, Turkey and its head office
address is as follows:
Türk Hava Yolları A.O. Genel Yönetim Binası, Yeşilköy Mahallesi, Havaalanı Caddesi No: 3/1
34149 Yeşilköy İSTANBUL.
The Company’s shares have been traded on Borsa İstanbul (“BIST”) since 1990.
Subsidiaries and Joint Ventures
The table below sets out the consolidated subsidiaries of the Group as of 30 June 2020 and 31 December
2019:
Ownership Rate Country of

Name of the Company Principal Activity 30 June 2020 31 December 2019 Registration
THY Teknik A.Ş. Aircraft Maintenance
(THY Teknik) Services 100% 100% Turkey
THY Uçuş Eğitim ve Training & Airport
Havalimanı İşletme A.Ş. Operations 100% 100% Turkey
THY Havaalanı
Gayrimenkul Yatırım ve
İşletme A.Ş. Airport Investment 100% 100% Turkey
THY Uluslararası
Yatırım ve Taşımacılık Cargo and Courier
A.Ş. Transportation 100% 100% Turkey
Cornea Havacılık
Sistemleri San. Ve Tic. Software System
A.Ş. Maintenance Services 80% 80% Turkey
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1. GROUP ORGANIZATION AND ITS OPERATIONS (cont’d)
Subsidiaries and Joint Ventures (cont’d)
The table below sets out joint ventures of the Group as of 30 June 2020 and 31 December 2019:
Ownership Share and Voting Power

Country of
Registration and
Company Name Operations 30 June 2020 31 December 2019 Principal Activity
Güneş Ekspres Havacılık A.Ş. Aircraft
(Sun Express) Turkey 50% 50% Transportation
THY DO&CO İkram Hizmetleri A.Ş. Catering

Turkey 50% 50%
(Turkish DO&CO) Services
Maintenance
P&W T.T. Uçak Bakım Merkezi Ltd. Şti. (TEC) Turkey 49% 49% Services
TGS Yer Hizmetleri A.Ş. (TGS) Turkey 50% 50% Ground Services
Aviation Fuel
THY OPET Havacılık Yakıtları A.Ş. (THY Opet)
Turkey 50% 50% Services
Goodrich Thy Teknik Servis Merkezi Maintenance
Ltd. Şti. (TNC) (Goodrich) Turkey 40% 40% Services
Uçak Koltuk Sanayi ve Ticaret A.Ş Cabin Interior
Turkey 50% 50%
(Uçak Koltuk) Products
Cabin Interior
TCI Kabin İçi Sistemleri San ve Tic. A.Ş. (TCI) Turkey 50% 50%
Products
VAT Return and
Vergi İade Aracılık A.Ş.
Turkey 30% 30% Consultancy
Aircraft
Air Albania
Albania 49% 49% Transportation
Cargo and
We World Express Ltd.
Hong Kong 45% 45% Courier
Aviation Fuel
TFS Akaryakıt Hizmetleri A.Ş. (*) Turkey 25% - Services
(*) TFS Akaryakıt Aviation Fuels is a joint venture of Turkish Airlines,Taya Liman İşletmesi A.Ş., Zirve
Holding A.Ş. and Demirören Akaryakıt Sanayi ve Ticaret A.Ş. which each holds an equal stake. The
company provides jet fuel storage and supply services at Istanbul Grand Airport in Turkey.
The Group owns 49%, 49%, 45%, 40%, 30% and 25% equity shares of TEC, Air Albania, We World
Express Ltd., Goodrich, Vergi İade Aracılık A.Ş. and TFS Akaryakıt Hizmetleri A.Ş. 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 respective
investor agreement. Thus, the Group concluded that it has joint control over TEC, Air Albania, We World
Express, Goodrich, Vergi İade Aracılık A.Ş. and TFS Akaryakıt Hizmetleri A.Ş..
9
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 six-month period ended 30 June
2020 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 2019.
Board of Directors has approved the consolidated financial statements as of 30 June 2020 on 13 August
2020. 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 derivative financial instruments, 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.
Adjustment of Financial Statements in Hyperinflationary Periods

As of 1 January 2005, “IAS 29: Financial Reporting in Hyperinflationary Economies” was no longer
applied henceforward.
Functional and Reporting Currency
Functional currency
The consolidated financial statements of the Group are presented in US Dollars, which is the functional
currency of the Group.
Although the currency of the country in which the Group is domiciled is Turkish Lira (TL), the Group’s
functional currency is determined as US Dollar. US Dollar is used to a significant extent in, and has a
significant impact on the operations of the Group and reflects the economic substance of the underlying
events and circumstances relevant to the Group. Therefore, the Group uses the US Dollar in measuring
items in its financial statements and as the functional currency. All currencies other than the currency
selected for measuring items in the consolidated financial statements are treated as foreign currencies.
Accordingly, transactions and balances not already measured in US Dollar have been remeasured in US
Dollar in accordance with the relevant provisions of IAS 21 the Effects of Changes in Foreign Exchange
Rates.
Except where otherwise indicated, all values are rounded the nearest million (US Dollar 000,000).
Basis of Consolidation
a. The consolidated financial statements include the accounts of the parent company, THY, its subsidiaries
and its joint ventures on the basis set out in sections (b) below. Financial statements of the subsidiaries
and joint ventures are adjusted where applicable in order to apply the same accounting policies. All
transactions, balances, profit and loss within the Group are eliminated during consolidation.
10
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.1 Basis of Presentation (cont’d)

Basis of Consolidation (cont’d)
b. The Group has twelve joint ventures (Note: 1). These joint ventures are economical activities whereby
decisions about strategic finance and operating policy are jointly made by the consensus of the Group
and other investors. The joint ventures are controlled by the Group jointly, and are accounted for
using.the.equity.method. Under the equity method, joint ventures are initially recognized at cost and
adjusted to recognize any distributions received, impairments in the joint ventures and the Group’s share
of the profit or loss after the date of acquisition. Joint ventures’ losses that exceed the Group’s share are
not recognized, unless the Group has incurred legal or constructive obligations on behalf of the joint
venture.
c. The non-controlling share in the assets and results of subsidiaries for the year are separately classified as
“non-controlling interest” in the consolidated statements of financial position and consolidated
statements of profit or loss.
Business Combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is
the date on which control is transferred to the Group. Control occurs when the investor is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. In assessing control, the Group takes into consideration potential
voting rights that currently are exercisable.
The Group measures goodwill at the acquisition date as:
- the fair value of the consideration transferred; plus
- the recognized amount of any non-controlling interests in the acquire; plus
- if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the
acquire; less
- the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities
assumed.
When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts generally are recognized in profit or loss. Transaction costs, other than those
associated with the issue of debt or equity securities, that the Group incurs in connection with a business
combination are expensed as incurred.
2.2 Changes and Errors in Accounting Policies Estimates
The significant estimates and assumptions used in preparation of these condensed consolidated interim
financial statements as at and for the period ended 30 June 2020 are consistent with those used in the
preparation of the Group’s consolidated financial statements as at and for the year ended 31 December
2019.
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2.3 Summary of Significant Accounting Policies
The accounting policies used in preparation of condensed consolidated interim financial statements as at 30
June 2020 are consistent with those used in the preparation of consolidated statements for the year ended
31 December 2019.
2.4 New and Revised Standards and Interpretations
a) Standards, amendments and interpretations applicable as at 30 June 2020:
Amendments to IAS 1 and IAS 8 on the definition of material; effective from Annual periods beginning
on or after 1 January 2020. These amendments to IAS 1, ‘Presentation of financial statements’, and IAS 8,
‘Accounting policies, changes in accounting estimates and errors’, and consequential amendments to other
IFRSs:
i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for Financial
Reporting;
ii) clarify the explanation of the definition of material; and
iii) incorporate some of the guidance in IAS 1 about immaterial information.
Amendments to IFRS 3 - definition of a business; effective from Annual periods beginning on or after 1
January 2020. This amendment revises the definition of a business. According to feedback received by the
IASB, application of the current guidance is commonly thought to be too complex, and it results in too
many transactions qualifying as business combinations.
Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest rate benchmark reform; effective from Annual
periods beginning on or after 1 January 2020. These amendments provide certain reliefs in connection with
interest rate benchmark reform. The reliefs relate to hedge accounting and have the effect that IBOR reform
should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness should
continue to be recorded in the income statement. Given the pervasive nature of hedges involving IBOR-
based contracts, the reliefs will affect companies in all industries.
Amendment to IFRS 16, ‘Leases’ – Covid-19 related rent concessions; effective from Annual periods
beginning on or after 1 June 2020. As a result of the coronavirus (COVID-19) pandemic, rent concessions
have been granted to lessees. Such concessions might take a variety of forms, including payment holidays
and deferral of lease payments. On 28 May 2020, the IASB published an amendment to IFRS 16 that
provides an optional practical expedient for lessees from assessing whether a rent concession related to
COVID-19 is a lease modification. Lessees can elect to account for such rent concessions in the same way
as they would if they were not lease modifications. In many cases, this will result in accounting for the
concession as variable lease payments in the period(s) in which the event or condition that triggers the
reduced payment occurs.
b) Standards, amendments and interpretations that are issued but not effective as at 30 June 2020:
IFRS 17, ‘Insurance contracts’; effective from annual periods beginning on or after
1 January 2023. This standard replaces IFRS 4, which currently permits a wide variety of practices in
accounting for insurance contracts. IFRS 17 will fundamentally change the accounting by all entities that
issue insurance contracts and investment contracts with discretionary participation features.
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2.4 New and Revised Standards and Interpretations (cont’d)
b) Standards, amendments and interpretations that are issued but not effective as at 30 June 2020
(cont’d):
Amendments to IAS 1, Presentation of financial statements’ on classification of liabilities; effective

from 1 January 2022. These narrow-scope amendments to IAS 1, ‘Presentation of financial statements’,
clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the
end of the reporting period. Classification is unaffected by the expectations of the entity or events after the
reporting date (for example, the receipt of a waiver or a breach of covenant). The amendment also clarifies
what IAS 1 means when it refers to the ‘settlement’ of a liability.
A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 17 and some annual improvements
on IFRS 1, IFRS 9, IAS 41 and IFRS 16; effective from Annual periods beginning on or after 1 January
2022.
o Amendments to IFRS 3, ‘Business combinations’ update a reference in IFRS 3 to the

Conceptual Framework for Financial Reporting without changing the accounting requirements
for business combinations.
o Amendments to IAS 16, ‘Property, plant and equipment’ prohibit a company from deducting
from the cost of property, plant and equipment amounts received from selling items produced
while the company is preparing the asset for its intended use. Instead, a company will
recognise such sales proceeds and related cost in profit or loss.
o Amendments to IAS 37, ‘Provisions, contingent liabilities and contingent assets’ specify
which costs a company includes when assessing whether a contract will be loss-making.
Annual improvements make minor amendments to IFRS 1, ‘First-time Adoption of IFRS’,

IFRS 9, ‘Financial instruments’, IAS 41, ‘Agriculture’ and the Illustrative Examples
accompanying IFRS 16, ‘Leases’.
The new standards, amendments and improvements have no material impacts on the financial position and
performance of the Group.
2.5 Determination of Fair Values
Various accounting policies and explanations of the Group necessitate to determinate the fair value of both
financial and non-financial assets and liabilities. If applicable, additional information about assumptions
used for determination of fair value are presented in notes particular to assets and liabilities.
Evaluation methods in terms of levels are described as follows:
- Level 1: Quoted (unadjusted) prices in active markets for identical assets and obligations.
- Level 2: Variables obtained directly (via prices) or indirectly (by deriving from prices) which are
observable for similar assets and liabilities other than quoted prices mentioned in Level 1.
- Level 3: Variables, which are not related to observable market variable for assets and liabilities
(unobservable variables).
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2.6 Impact of Covid-19 Pandemic on Group Activities
Due to the impact of COVID-19 in the first half of 2020, global air traffic has significantly declined and
stringent measures have been taken to slow the expansion of the pandemic. Several constraints were
imposed and restrictions continue to have a major impact on global aviation industry.
To mitigate the effect of the pandemic, THY has taken several measures and assesses further
developments. The actions taken are listed below:
Capacity
After the travel restrictions experienced for a two-month period due to the coronavirus pandemic, THY
brings its domestic and international passenger flights back in June. As a result of the work with the health
authorities and the normalization process for Turkey, domestic flights started on 4th of June. THY is
planning to open many of the closed international destinations depending on the situation in the
corresponding routes. THY may open routes again with lower frequencies and recovery, capacity supply
will be increased with the demand. On June 11, THY restarted international flights and is increasing flights
gradually. Flight plan is being continuously updated according to developments and 60% decline in
passenger number and around 55% decline in ASK are expected in 2020 full year in comparison to 2019.
In the second half of 2020, THY expects to reach 45% of ASK in the same period of 2019. Thanks to lower
cost base of THY compared to other airlines, the Group expect a faster recovery than its competitors in
financial and operational results; especially due to faster recovery in ethnic and opportunistic leisure
passenger segments.
Cargo business
Cargo operations are continuing at full capacity with freighters and in addition, more than 30 wide body
passenger aircraft are being utilized for cargo operations. Turkish Cargo has started to provide cargo-only
flight services with wide body passenger aircraft in addition to the operation with freighters. As a result,
52% increase was recorded in cargo revenues compared to the same period of last year (cargo revenue
increase only in 2Q is 90%). It is expected that cargo operations will add significantly to total revenue and
profits compared to those of the previous year, thanks to increasing unit revenues and declining operational
costs led by the drop in fuel prices.
Government support
THY is continually communicating with government authorities for alternative scenarios to alleviate the
effects arising from the unfavorable environment. In this respect, the Ministry of Finance and Treasury of
Turkey gradually introduces economic packages to prevent the impact of the novel coronavirus on Turkish
Economy and includes measures for groups and companies.
On 17 April 2020, with the related law entered into force, THY has been put into place the new Short Term
Employment status starting from April 1st of 2020, where the employees work on part-time basis without
harming ongoing operations and get paid accordingly. As the government provided a reduced-time work
law to support Turkish companies, some part of the Group’s personnel cost (USD 33 as of 30 June 2020)
was covered by government depending on the number of working days. On the other hand, this
enforcement might be extended until the end of the year by presidential executive order.
In addition, Turkish Government introduced a support package for the pandemic. The value-added tax rate
is dropped from 18% to 1% for three months with regard to domestic air transportation to support demand
via reduced ticket price. Payments of withholding tax and social security premiums of April, May and June
2020 are deferred for six months to the first quarter of 2021. THY deferred a portion of principal and
interest payments related to commercial loans at least for three months. Government support package
resulted in decrease of cash outflows and led in cash savings.
14
2.6 Impact of Covid-19 Pandemic on Group Activities (cont’d)
Cost reductions
THY is taking actions to decrease the operational expenses and secure the financial liquidity of the Group.
These include reducing or postponing uncommitted capital expenditures, cutting non-urgent and non-
operational expenses and discussing with the authorities for possible deferral of fees and tax payments.
THY postponed Eurocontrol payments to 2021 and some long-term contracts, such as fuel expenses and
lease agreements, for three to six months to reduce short-term outflow. THY is renegotiating with service
providers to lower fees due to weaker demand environment. Original aircraft delivery plan for 2020- 2021
and related pre-delivery payments are being reevaluated together with OEMs.
Asset valuation
Related to the COVID-19 pandemic, THY paid attention to the recoverability of fleet, right of use assets
and deferred tax assets and conducted impairment tests under different scenarios. As a result, no
impairment related to fleet and right of use assets was recognized. However, the recoverability on deferred
tax was revised and a write-off of USD 130 has been recognized.
Accounting estimates and assumptions
Due to COVID-19 pandemic, THY reviewed accounting estimates and assumptions.
According to IFRS 9, ECL estimations, especially historical loss rates, for trade receivables was reviewed
to include forward-looking information with regard to COVID-19. In addition, estimates used in the
calculation of provisions for receivables from pilots for flight training were reviewed to reflect current
environment.
Discount rates and inflation rates used in calculations of provisions for employee benefits were revised to
incorporate related COVID-19 impact.
Discontinuation of Sun Express Deutschland operations
Operations of Sun Express Deutschland which is a subsidiary of Sun Express has been discontinued and
according to BoD resolution of Sun Express dated 17/06/2020, it is decided Sun Express Deutscland has
been solvently liquidated starting from 23rd of June and controlled liquidation process of the company will
be prepared. In pursuant of the BoD resolution, effects of the liquidation is being discussed and necessary
actions are being taken.
15
3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD

The joint ventures accounted for using the equity method are as follows:
Sun Express 67 166
TEC 61 59
Turkish DO&CO 50 55
TGS 34 40
THY Opet 22 33
Uçak Koltuk 7 6
TCI 5 6
TFS Akaryakıt 4 -
Goodrich 4 3
We World Express 1 1
Vergi İade Aracılık (*) - -
Air Albania - -
255 369
(*) The Group’s share in the shareholders’ equity of Vergi İade Aracılık is less than USD 1.
Share of investments’ profit / (loss) accounted by using the equity method are as follows:
30 June 2020 30 June 2020 30 June 2019 30 June 2019
Turkish DO&CO 4 1 6 3
TEC 1 (2) (6) -
Uçak Koltuk 1 - 2 2
Goodrich 1 1 1 1
TGS - (2) 8 6
TCI (1) (1) - -
TFS Akaryakıt (4) (4) - 0
THY Opet (4) (2) 11 5
Sun Express (89) (65) (14) 6
(91) (74) 8 23
Financial information for Sun Express as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 1,803 1,865
Total liabilities 1,669 1,533
Shareholders' equity 134 332
Group's share in joint
venture's shareholders'
equity 67 166

Revenue 254 75 555 360
Loss for the period (177) (128) (28) 11
venture's loss
for the period (89) (65) (14) 6
16
3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d)
Financial information for TEC as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 203 219
Total liabilities 78 99
equity 61 59

Revenue 227 98 218 129
Profit / (Loss) for
the period 1 (5) (13) -
venture's profit / (loss)
for the period 1 (2) (6) -
Financial information for Turkish DO&CO as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
equity 50 55

Revenue 81 10 163 91
Profit for the period 7 1 12 7
venture's profit
for the period 4 1 6 3
Financial information for TGS as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
equity 34 40
17
Financial information for TGS as of 30 June 2020 and 2019 are as follows (cont’d):
Revenue 82 8 166 96
(Loss) / Profit for
the period (1) (5) 17 14
venture's (loss) / profit
for the period - (2) 8 6
Financial information for THY Opet as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
equity 22 33

Revenue 141 30 635 167
(Loss) / Profit for
the period (8) (5) 21 10
venture's (loss) / profit
for the period (4) (2) 11 5
Financial information for TFS Akaryakıt Hizmetleri as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 160 -
Total liabilities 143 -
Shareholders' equity 17 -
equity 4 -

Revenue 338 (3) - -
Loss for the period (14) (12) - -
venture's loss
for the period (4) (4) - -
18
Financial information for Uçak Koltuk as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 33 29
equity 7 6

Revenue 15 4 17 7
Profit for the period 2 - 3 3
venture's profit
for the period 1 - 2 2
Financial information for TCI as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 17 19
equity 5 6
Revenue 2 1 7 3
Loss for the period (1) - - (1)
venture's loss
for the period (1) (1) - -
Financial information for Goodrich as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 13 12
equity 4 3
19
Financial information for Goodrich as of 30 June 2020 and 2019 are as follows (cont’d):

Revenue 9 4 13 6
Profit for the period 1 - 2 1
venture's profit
for the period 1 1 1 1
Financial information for We World Express as of 30 June 2020 and 2019 are as follows:
30 June 31 December
2020 2019
Total assets 4 4
equity 1 1

Revenue 1 (2) - -
Loss for the period - - - -
venture's loss
for the period - - - -
4. SEGMENT REPORTING
Group management makes decisions regarding resource allocation to segments based upon the results and
the activities of its air transport and aircraft technical maintenance services segments for the purpose of
segments’ performance evaluation. The Group’s main activities can be summarized as follows:
Air Transport (“Aviation”)
The Group’s aviation activities consist of mainly domestic and international passenger and cargo air
transportation.
Technical Maintenance Services (“Technical”)
The Group’s technical activities consist of mainly aircraft repair and maintenance services and providing
technical and infrastructure support related to aviation sector. The detailed information about the revenue
of the Group is given in Note 20.
20
4. SEGMENT REPORTING (cont’d)
4.1 Total Assets and Liabilities
Total Assets 30 June 2020 31 December 2019

Aviation 24,601 24,490
Technical 1,504 1,568
Total 26,105 26,058
Less: Eliminations due to consolidation (1,363) (1,334)
Total assets in consolidated
financial statements 24,742 24,724
Total Liabilitites 30 June 2020 31 December 2019

Aviation 18,673 17,825
Technical 348 386
Total 19,021 18,211
Less: Eliminations due to consolidation (241) (351)
Total liabilitites in consolidated
financial statements 18,780 17,860
4.2 Profit / (Loss) before Tax
Segment Results:
Inter-segment
1 January - 30 June 2020 Aviation Technic elimination Total
Sales to External Customers 3,349 86 - 3,435
Inter-Segment Sales 16 331 (348) (1)
Revenue 3,365 417 (348) 3,434
Cost of Sales (-) (3,440) (383) 349 (3,474)
Gross Profit (75) 34 1 (40)
Administrative Expenses (-) (76) (42) 2 (116)
Selling and Marketing Expenses (-) (372) (4) - (376)
Other Operating Income 121 3 (6) 118
Other Operating Expenses (-) (30) (1) 3 (28)
Operating Loss Before
Investment Activities (432) (10) - (442)
Income from Investment Activities 91 - - 91
Expenses from Investment Activities - - - -
Share of Investments' Loss
Accounted by Using
The Equity Method (92) 1 - (91)
Operating Loss (433) (9) - (442)
Financial Income 50 - (4) 46
Financial Expense (-) (279) 1 4 (274)
Loss Before Tax (662) (8) - (670)
21
4. SEGMENT REPORTING (cont’d)
4.2 Profit / (Loss) before Tax (cont’d)
Segment Results (cont’d):

Inter-segment
Sales to External Customers 5,799 150 - 5,949
Inter-Segment Sales 23 511 (534) -
Revenue 5,822 661 (534) 5,949
Cost of Sales (-) (5,300) (491) 534 (5,257)
Gross Profit 522 170 - 692
Administrative Expenses (-) (101) (46) 2 (145)
Selling and Marketing Expenses (-) (738) (3) 1 (740)
Other Operating Income 99 9 (8) 100
Other Operating Expenses (-) (39) (8) 5 (42)
Operating Loss Before
Investment Activities (257) 122 - (135)
Income from Investment Activities 86 1 - 87
Expenses from Investment Activities (78) (1) - (79)
Share of Investments' Loss
Accounted by Using
The Equity Method 14 - 6 - 8
Operating Loss (235) 116 - (119)
Financial Income 36 - (10) 26
Financial Expense (-) (239) 6 10 (223)
Loss Before Tax (438) 122 - (316)
4.3 Investment Operations
Inter-segment
Purchase of property and equipment
and intangible assets 1,656 122 - 1,778
Current period depreciation
and amortization charge 742 71 - 813
Investments accounted
by using equity method 183 72 - 255
Inter-segment
Purchase of property and equipment
and intangible assets 1,108 181 - 1,289
Current period depreciation
and amortization charge 663 73 - 736
Investments accounted
by using equity method 292 61 - 353
22
5. CASH AND CASH EQUIVALENTS

Cash 2 1
Banks – Time deposits 1,705 2,000
Banks – Demand deposits 54 74
1,761 2,075
Details of the time deposits as of 30 June 2020 are as follows:
Amount Currency Effective Interest Rate Maturity 30 June 2020

359 TL 7.04% - 8.28% July 2020 52
259 USD 0.20% - 1.75% August 2020 259
1,224 EUR 0.28% - 1.08% September 2020 1,380
1,770 DZD 1.98% July 2020 14
1,705
Details of the time deposits as of 31 December 2019 are as follows:
Amount Currency Effective Interest Rate Maturity 31 December 2019

2,387 TL 9.35% - 11.60% January 2020 402
223 USD 1.50% - 1.60% January 2020 223
1,196 EUR 0.36% - 0.80% March 2020 1,340
4,185 DZD 1.98% - 3.15% March 2020 35
2,000
6. FINANCIAL INVESTMENTS
Short-term financial investments are as follows:

Fair value through profit and loss (FVTPL)
- Equity securities 15 15
Fair value through other comprehensive income
(FVOCI)
- Corporate debt securities - 9
Time deposits with maturity more than 3 months - 376
15 400
23
6. FINANCIAL INVESTMENTS (cont’d)
Time deposit with maturity more than 3 months as of 31 December 2019 is as follows:

336 EUR 0.24% - 0.40% April 2020 376
Long-term financial investments are as follows:

FVOCI
- Governmet debt securities 53 49
- Corporate debt securities 31 40
Other 1 1
85 90
Period remaining to contractual maturity dates for FVOCI as of 30 June 2020 and 31 December 2019 is as
follows:

Less than 1 year - 9
1 to 5 years 3 3
Over 5 years 81 86
84 98

FVTPL
- Equity securities 15 15
7. BORROWINGS
Short-term borrowings are as follows:

Bank borrowings 1,567 1,241
Short-term portions of long-term borrowings are as follows:

Finance lease obligations (Note: 14) 1,278 1,118
Lease liabilities (Note: 14) (*) 285 256
Bank borrowings 714 491
2,277 1,865
24
7. BORROWINGS (cont’d)
Long-term borrowings are as follows:
Finance lease obligations (Note: 14) 7,444 7,274
Lease liabilities (Note: 14) (*) 1,423 1,271
Bank borrowings 1,848 1,721
10,715 10,266
(*) According to IFRS 16, these amounts are lease liabilities.
Details of bank borrowings as of 30 June 2020 and 31 December 2019 are as follows:
Less than 1 year 2,281 1,732
Between 1 – 5 years 1,824 1,721
Over 5 years 24 -
4,129 3,453
Interest Rate 30 June

Amount Currency Type Effective Interest Rate Payment Period 2020
700 TRY Fixed 8.5% - 9.25% December 2020 - June 2021 102
2,958 EUR Fixed 0.30% - 4.93% July 2020 - May 2025 3,333
Euribor + 2.03% -
616 EUR Floating Euribor + 3.77% August 2021 - April 2026 694
4,129
Interest Rate 31 December

Amount Currency Type Effective Interest Rate Payment Period 2019
2,243 EUR Fixed 0.30% - 4.93% February 2020 - December 2024 2,511
Euribor + 2.03% -
841 EUR Floating Euribor + 3.77% February 2020 - July 2024 942
3,453
Reconciliation of liabilities arising from financing activities:
31 December New
2019 Payment Non-cash Changes Leases 30 June 2020
Lease Liabilities 8,392 (646) 149 827 8,722
31 December New 31 December
2018 Payment Non-cash Changes Leases 2019
Lease Liabilities 7,986 (1,149) 115 1,440 8,392
31 December
2019 Payment Non-cash Changes Cash-in 30 June 2020
Bank Borrowings 3,453 (590) 81 1,185 4,129
31 December 31 December
2018 Payment Non-cash Changes Cash-in 2019
Bank Borrowings 2,622 (2,340) 10 3,161 3,453
25
7. BORROWINGS (cont’d)
In accordance to IFRS 16 reconciliation of lease liabilities:

31 December New
2019 Payment Non-cash Changes Leases 30 June 2020
Aircraft 1,466 (154) 28 316 1,656
Property 58 (5) (3) - 50
Other 3 (1) - - 2
1,527 (160) 25 316 1,708
1 January New 31 December
2019 Payment Non-cash Changes Leases 2019
Aircraft 1,534 (325) 52 205 1,466
Property 55 (13) 2 14 58
Other 6 (3) - - 3
1,595 (341) 54 219 1,527
8. OTHER FINANCIAL LIABILITIES
Short-term other financial liabilities of the Group are as follows:

Other financial liabilities 1 19
Other financial liabilities consist of overnight interest-free borrowings from banks obtained for settlement
of monthly tax and social security premium payments.
9. RELATED PARTIES
Short-term trade receivables from related parties are as follows:
Air Albania 6 -
We World Express Ltd. 1 -
7 -
Other short-term receivables from related parties are as follows:

TGS - 28
Short-term trade payables to related parties that are accounted by using the equity method are as follows:

TFS Akaryakıt Hizmetleri 65 -
TEC 53 55
THY Opet 44 38
TGS 44 37
Turkish DO&CO 30 21
Goodrich 4 2
Sun Express - 19
240 172
26
9. RELATED PARTIES (cont’d)
Transactions with related parties for the period ended 30 June 2020 and 2019 are as follows:
a) Sales to related parties:

TEC 33 20 14 11
Sun Express 12 6 20 9
We World Express Ltd. 4 - - -
PTT 2 1 2 -
TGS 1 - 3 2
Goodrich 1 - 1 -
Air Albania - - 1 1
53 27 41 23
b) Purchases from related parties:

TFS Akaryakıt Hizmetleri 321 14 - -
TEC 119 69 109 54
THY Opet 115 28 533 127
TGS 80 8 153 86
Turkish DO&CO 76 10 152 82
Sun Express 44 12 84 51
Goodrich 9 4 10 4
Uçak Koltuk 5 2 3 2
Air Albania 3 (1) - -
Other - - 1 1
772 146 1,045 407
Details of the financial assets and liabilities for related parties as of 30 June 2020 and 31 December 2019
are as follows:

Banks - Time deposits 479 1,435
Financial assets 92 104
Banks - Demand deposits 3 8
Financial investments - 275
Bank borrowing (310) (312)
264 1,510
As of 30 June 2020, the amount of letters of guarantee given to the related parties is USD 901. (31
December 2019: USD 886)
27
Details of the financial investments at related parties as of 31 December 2019 are as follows:

246 EUR 0.28% - 0.40% April 2020 275
Details of the time deposits at related parties as of 30 June 2020 and 31 December 2019 are as follows:

358 TL 7.50% - 7.65% July 2020 52
379 EUR 0.28% - 1.00% August 2020 427
479

2,381 TL 9.35% - 10.00% January 2020 401
922 EUR 0.36% - 0.56% March 2020 1,033
1 USD 1.50% January 2020 1
1,435
Details of the financial assets at related parties as of 30 June 2020 and 31 December 2019 are as follows:

July 2020 -
92 USD 3.88% - 8.50% December 2020 92

February 2020 -
104 USD 3.88% - 8.50% June 2020 104
Details of the bank borrowings at related parties as of 30 June 2020 and 31 December 2019 are as follows:

276 EUR 2.94% - 4.00% December 2024 310

279 EUR 2.94% - 4.00% December 2024 312
Interest income from related parties:

Türkiye Halk Bankası A.Ş. 5 2 17 11
Ziraat Bankası A.Ş. - - 1 1
5 2 18 12
28
Interest expense to related parties:

Ziraat Bankası A.Ş. 5 2 3 2
Transactions between the Group and THY Opet are related to the supply of aircraft fuel; transactions
between the Group and Turkish DO&CO are related to catering services; transactions between the Group
and Sun Express are related to wet lease, seat sales operations and maintenance services; transactions
between the Group and TGS are related to ground services; transactions between the Group and TEC are
related to engine maintenance services; transactions between the Group and PTT are related to cargo
transportation; transactions between the Group and Halk Bankası and Ziraat Bankası are related to banking
services, transactions between the Group and Türk Telekom are related to advertising and
telecommunication services and transactions between the Group and TFS Akaryakıt Hizmetleri A.Ş. are
related to the supply of aircraft fuel. Receivables from related parties are not collateralized and maturity of
trade receivables is 30 days.
The total amount of salaries and other short-term benefits provided for the Board Members, General
Manager and Deputy General Managers are USD 2 (1 January- 30 June 2019: USD 2).
10. OTHER RECEIVABLES
Other short-term receivables from third parties as of 30 June 2020 and 31 December 2019 are as follows:

Predelivery payments made for aircrafts 1,191 778
Receivables from technical purchases 194 168
Value added tax receivables 38 42
Receivables from pilots for flight training 27 24
Bank deposits with transfer limitations (*) 25 36
Others 2 5
1,477 1,053
(*)As of 30 June 2020, the balance of this account includes bank deposits in Ethiopia, Bangladesh, Algeria, Nigeria,
Senegal, Niger, Mali, Republic of Cote D’ivoire, Burkina Faso, Eritrea, Mozambique, Bolivarian Republic of
Venezuela, Republic of Angola, Republic of Cameroon, Republic of Chad, Republic of Sudan, Gabon, Somalia,
Benin, Republic of Zimbabwe, Argentina, Democratic Republic of the Congo, Republic of Cuba, Republic of
Lebanon and Iran. (As of 31 December 2019, the balance of this account includes bank deposits in Ethiopia,
Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Republic of Cote D’ivoire, Burkina Faso, Eritrea, Mozambique,
Bolivarian Republic of Venezuela, Republic of Angola, Republic of Cameroon, Republic of Chad, Republic of Sudan,
Gabon, Somalia, Benin, Republic of Zimbabwe, Argentina, Democratic Republic of the Congo, Republic of Cuba,
Republic of Lebanon and Iran)
29
10. OTHER RECEIVABLES (cont’d)
Other long-term receivables from third parties as of 30 June 2020 and 31 December 2019 are as follows:

Receivables related to investment certificates (***) 343 313
Predelivery payments made for aircrafts 318 761
Receivables from pilots for flight training 177 154
Interest and commodity swap agreement deposits 160 -
Deposits and guarentees given 40 42
Bank deposits with transfer limitations (**) 4 6
1,042 1,276
(**) As of 30 June 2020, the balance of this account includes bank deposits in Syria.
(***) This represents the accrued amount as of 30 June 2020. Total contribution of government incentives related to
fleet investments amounts to USD 2.727. See note 2.3 for accounting policy.
11. DEFERRED INCOME
Deferred income is as follows:

Passenger flight liabilites 885 1,032
Other short-term deferred income 33 39
918 1,071
Passenger flight liability is as follows:

Flight liability generating from ticket sales 678 797
Flight liability generating from
frequent flyer program 207 235
885 1,032
Other short-term deferred income is as follows:

Advances received 15 18
Deferred finance income 11 11
Unearned bank protocol revenue accruals 7 10
33 39
Long-term deferred income is as follows:

Deferred finance income 114 118
Gross manufacturer’s credits 31 31
Accumulated depreciation of
manufacturer’s credit (31) (31)
Unearned bank protocol revenue accruals - 2
114 120
30
12. PROPERTY AND EQUIPMENT
Technical Components
Land, land Equipment, Other and
improvements Simulator equipments, Spare repairable Leasehold Construction
and buildings and Vehicles and fixtures Aircrafts engines spare parts improvements In Progress Total
Cost
Opening balance at 1 January 2020 948 591 239 20,814 826 660 183 692 24,953
Additions 1 8 3 1,459 14 68 - 219 1,772
Transfer (*) - 30 1 14 19 - 1 (77) (12)
Disposals - (1) (2) (72) (3) (36) (4) - (118)
Closing balance at 30 June 2020 949 628 241 22,215 856 692 180 834 26,595
Accumulated Depreciation
Opening balance at 1 January 2020 242 271 173 6,317 279 315 95 - 7,692
Depreciation charge 25 23 11 667 32 37 8 - 803
Disposals - (1) (1) (72) (3) (19) (4) - (100)
Closing balance at 30 June 2020 267 293 183 6,912 308 333 99 - 8,395
Net book value at 30 June 2020 682 335 58 15,303 548 359 81 834 18,200
Net book value at 31 December 2019 706 320 66 14,497 547 345 88 692 17,261
(*) Construction in progress amounting to USD 12 has been transferred to intangible assets.
As of 30 June 2020, the total net book value of the property, plant and equipment acquired by leases is USD 14,324 (31 December 2019: USD 13,618)
Depreciation and amortization expenses are recognized in cost of sales is amounting to USD 781 (30 June 2019: USD 707 ), general administrative
expenses is amounting to USD 28 (30 June 2019: USD 26) and marketing and sales expenses is amounting to USD 4 (30 June 2019: USD 3) in total of
USD 813 as of 30 June 2020 (30 June 2019: USD 736).
The Group's construction in progress balances mainly consist of İstanbul Airport buildings, aircraft modifications, engine maintenance, backup engines,
simulators and cargo equipment.
31
12. PROPERTY AND EQUIPMENT (cont’d)
Technical Components
Land equipments Other and
improvements simulators equipments, Spare repairable Leasehold Construction
and buildings and vehicles and fixtures Aircrafts engines spare parts improvements in progress Total
Cost
Opening balance at 1 January 2019 303 429 214 17,491 738 583 531 718 21,007
Recognition of right of use asset on initial
application of IFRS 16 56 6 - 1,576 - - - - 1,638
Adjusted Opening balance as of 1 January
2019 359 435 214 19,067 738 583 531 718 22,645
Additions - 13 16 821 60 113 8 252 1,283
Transfer - 3 1 56 20 - 31 (111) -
Disposals - (4) (2) (724) (35) (59) (17) - (841)
Closing balance at 30 June 2019 359 447 229 19,220 783 637 553 859 23,087
Opening balance at 1 January 2019 89 235 151 5,835 267 310 202 - 7,089
Depreciation charge 11 19 13 594 28 43 20 - 728
Disposals - (2) (2) (632) (33) (35) (16) - (720)
Closing balance at 30 June 2019 100 252 162 5,797 262 318 206 - 7,097
Net book value at 30 June 2019 259 195 67 13,423 521 319 347 859 15,990
Net book value at 31 December 2018 214 194 63 11,656 471 273 329 718 13,918
32
12. PROPERTY AND EQUIPMENT (cont’d)

Lease assets are as follows:
Aircraft Spare engines Real Estate Vehicles Total
Cost
Opening balance at 1 January 2020 17,647 165 74 6 17,892
Additions 1,431 - 1 - 1,432
Transfer 10 - - - 10
Disposals (58) - - - (58)
Transfers between the accounts (*) (263) - - - (263)
Closing balance at 30 June 2020 18,767 165 75 6 19,013
Aircraft Spare engines Real Estate Vehicles Total

Opening balance at 1 January 2020 4,222 39 10 3 4,274
Depreciation charge 583 5 6 1 595
Disposals (58) - - - (58)
Transfers between the account (*) (122) - - - (122)
Closing balance at 30 June 2020 4,625 44 16 4 4,689
Net book value at 30 June 2020 14,142 121 59 2 14,324
Net book value at 31 December 2019 13,425 126 64 3 13,618
(*) Transfers are mainly consists of aircraft that lease payments have been acquired and ownership has
been transferred to the Group.
The Group is still carrying out negotiations with the airport operator company (İGA Havalimanı
İşletmesi A.Ş.) regarding the rental areas, rental fee, renting conditions and period for İstanbul Airport.
Yet, no agreement is signed and there is no Board Decision about the above mentioned rental matters.
Despite the fact that there is a PPP tariff issued by State Airports Authority (DHMİ), it does not
eliminate the uncertainties regarding rental areas, rental fee, renting conditions and period which are
considered as material terms of a contract. Thus, it is not considered as appropriate to consider them
under IFRS16 scope and no calculations for assets or liabilities are made concerning the İstanbul
Airport rentals at June 2020 financial statements. However, the payments for the areas used at İstanbul
Airport are made with reservation according to PPP tariff and they are recorded under expense
accounts for the period.
13. INTANGIBLE ASSETS
Slot rights
and acquired Other
technical intangible
licenses (*) Rights assets Total
Cost
Opening balance at 1 January 2020 44 193 5 242
Additions - 6 - 6
Transfers - 12 - 12
Closing balance at 30 June 2020 44 211 5 260
Accumulated Amortization
Opening balance at 1 January 2020 - 157 3 160
Amortization charge - 10 - 10
Closing balance at 30 June 2020 - 167 3 170
Net book value at 30 June 2020 44 44 2 90
Net book value at 31 December 2019 44 36 2 82
33
13. INTANGIBLE ASSETS (cont’d)
Slot rights
and acquired Other
technical intangible
licenses (*) Rights assets Total
Cost
Opening balance at 1 January 2019 44 175 5 224
Additions - 6 - 6
Closing balance at 30 June 2019 44 181 5 230
Accumulated Amortization
Opening balance at 1 January 2019 - 141 1 142
Amortization charge - 8 - 8
Closing balance at 30 June 2019 - 149 1 150
Net book value at 30 June 2019 44 32 4 80
Net book value at 31 December 2018 44 34 4 82
(*) The Group considers slot rights and licenses received throught the acquisition of MNG Teknik and
accounted such assets as intangible assets at an amount of USD 10 with indefinite useful lives as these
assets do not have any expiry date and are usable in the foreseeable future.
14. LEASING TRANSACTIONS

Resulting from IFRS16, maturities of lease obligations are as follows:
Present Values of
Future Minimum
Interest Minimum
Lease Payments
Lease Payments
30 June 31 December 30 June 31 December 30 June 31 December
2020 2019 2020 2019 2020 2019
Less than 1 year 343 308 (58) (52) 285 256
Between 1 – 5 years 968 891 (140) (129) 828 762
Over 5 years 682 597 (87) (88) 595 509
1,993 1,796 (285) (269) 1,708 1,527
Maturities of finance lease obligations are as follows:
Present Values of
Future Minimum
Interest Minimum
Lease Payments
Lease Payments
30 June 31 December 30 June 31 December 30 June 31 December
2020 2019 2020 2019 2020 2019
Less than 1 year 1,408 1,257 (130) (139) 1,278 1,118
Between 1 – 5 years 4,820 4,722 (321) (354) 4,499 4,368
Over 5 years 3,017 2,991 (72) (85) 2,945 2,906
9,245 8,970 (523) (578) 8,722 8,392
34
14. LEASING TRANSACTIONS (cont’d)

Interest Range:
Floating rate obligations 5,112 5,394
Fixed rate obligations 3,610 2,998
8,722 8,392
The Group acquired certain portion of its aircrafts and spare engines through finance leases. The lease
terms are between 10 to 12 years. The Group has options to purchase related assets for an insignificant
amount at the end of lease terms. The Group’s obligations under finance leases are secured by the lessors’
title to the leased asset.
Lease term of Group’s contracts under IFRS 16 is 1-45 years. As of 30 June 2020 Turkish Lira, the US
Dollars, Euro, JPY and Swiss Franc denominated lease obligations’ weighted average interest rates are
5.20% (31 December 2019: 5.41%) .
As of 30 June 2020, the US Dollars, Euro, JPY and Swiss Franc denominated lease obligations’ weighted
average interest rates are 1.98% ( 31 December 2019: 2.37%) for the fixed rate obligations and 1.30% (31
December 2019: 1.29% ) for the floating rate obligations.
15. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
Short-term provisions as of 30 June 2020 and 31 December 2019 are as follows:
Short-term provision for employee benefits is as follows:

Provisions for unused vacation 45 39
Changes in the provisions for the period ended 30 June 2020 and 2019 are set out below:
1 January - 1 January -
30 June 2020 30 June 2019
Provisions at the beginning of the period 39 39
Provisions for the current period 160 148
Provisions released (148) (138)
Foreign currency translation differences (6) (4)
Provisions at the end of the period 45 45
The Group recognizes an obligation for unused vacation days based on salaries of employees at the end of
each reporting period.
35
15. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
Other short-term provision is as follows:

Provisions for legal claims 11 13
Changes in the provisions for legal claims for the period ended 30 June 2020 and 2019 are set out below:
30 June 2020 30 June 2019
Provisions at the beginning of the period 13 16
Provisions for the current period - 2
Provisions released (1) (4)
Foreign currency translation differences (1) (1)
Provisions at the end of the period 11 13
The Group provides with provisions for lawsuits initiated against itself due to its operations. The lawsuits
initiated against the Group are usually reemployment lawsuits by former employees or related to damaged
luggage or cargo. The estimates have been made on the basis of the legal advices.
36
16. COMMITMENTS
a) Guarantees/Pledges/Mortgages (“GPM”) given by the Group:
Amount of letters of guarantees given as of 30 June 2020 is USD 1,703 (31 December 2019: USD 1,334).
As of 30 June 2020, the letters of guarantee are given to various authorities (i.e. various banks and
vendors.)

Original Original
currency USD currency USD
amount equivalent amount equivalent
A. Total amounts of GPM given on
the behalf of its own legal entity - 1,703 - 1,334
-Collaterals
TL 59 9 52 9
EUR 1,424 1,604 1,131 1,266
USD 53 53 49 49
Other - 37 - 10
B. Total amounts of GPM given on the
behalf of subsidiaries that are included
in full consolidation - - - -
C. Total amounts of GPM given in order
to guarantee third party debts for
routine trade operations - - - -
D. Total amounts of other GPM given - - - -
i. Total amount of GPM given on
behalf of the Parent - - - -
ii. Total amount of GPM given on
behalf of other group companies not
covered in B and C - - - -
iii. Total amount of GPM given on
behalf of third parties not covered in C - - - -
1,703 1,334
The ratio of other GPM (“D”) given by the group to its equity is 0% as of 30 June 2020 (31 December
2019: 0%)
b) Aircraft purchase commitments:
To be delivered between the years 2020-2025, the Group signed an agreement for 179 aircrafts, (169 of
aircrafts are contractual and 10 of them are optional) with a list price value of 25,036 US Dollars. The
Group has made a predelivery payment of 1,513 US Dollars relevant to these purchases as of 30 June 2020.
37
17. EMPLOYEE BENEFITS
Provisions for retirement pay liability as of 30 June 2020 and 31 December 2019 is comprised of the
following:

Provision for retirement pay liability 133 135
Under Labor Law effective in Turkey, it is an obligation to make legal retirement pay to employees whose
employment is terminated in certain ways. Also, according to Article 60 of Social Security Law numbered
506 which was revised by the laws 2422, dated 6 March 1981 and numbered 4447, dated 25 August 1999,
it is an obligation to make legal retirement pay to those who entitled to receive retirement pay when leaving
their work. Some transfer provisions related to employment conditions prior to retirement are removed
from the Law by the revise made on 23 May 2002. Retirement pay liability assumptions and calculations
are changed in line with the revise made on 8 May 2008, which altered age of retirement.
Retirement pay liability is subject to an upper limit of monthly US Dollar 1,040 (full) (equivalent of TL 7,117
(full)) as of 30 June 2020. (31 December 2019: US Dollar 1,133 (full) equivalent of TL 6,730 (full)).
Retirement pay liability is not subject to any funding legally. Provisions for retirement pay liability are
calculated by estimating the present value of probable liability that will arise due to retirement of employees.
IAS 19 (“Employee Benefits”) stipulates the progress of the Group’s liabilities by use of actuarial valuation
methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described
as follows:
The key assumption is that maximum liability amount increases in accordance with the inflation rate for every
service year. Provisions in the accompanying consolidated financial statements as of 30 June 2020 are
calculated by estimating present value of liabilities due to retirement of employees. Provisions in the relevant
balance sheet dates are calculated with the assumptions of 7.80% annual inflation rate (31 December 2019:
7.65%) and 11.90% interest rate (31 December 2019: 12.00%). Estimated amount of non-paid retirement pay
retained in the Group due to voluntary leaves is assumed as 2.41% (31 December 2019: 2.62%). Ceiling for
retirement pay is revised semi-annually. Ceiling amount of US Dollar 1,040 (full) which is in effect since 30
June 2020 is used in the calculation of Group’s provision for retirement pay liability.
Movement in the provisions for retirement pay liability is as follows:
30 June 2020 30 June 2019
Provision at the beginning of the period 135 130
Interest charges 7 6
Service charge for the period 7 9
Actuarial loss 8 5
Payments (6) (5)
Foreign currency translation difference (18) (12)
Provision at the end of the period 133 133
38
18. EXPENSES BY NATURE
Expenses by nature for the period ended 30 June 2020 and 2019 are as follows:

Fuel expenses 985 196 1,836 981
Depreciation and amortisation charges 813 402 736 376
Personnel expenses 617 127 1,041 524
Aircraft maintenance expenses 310 93 384 192
Ground services expenses 239 55 391 202
Airport expenses 160 31 285 163
Air traffic control expenses 157 34 263 140
Passenger services and catering expenses 144 23 298 157
Commissions and incentives 110 19 258 116
Wet lease expenses 103 40 140 76
Advertisement and promotion expenses 51 14 88 41
Reservation systems expenses 43 (3) 144 71
Rents 37 22 42 20
Service expenses 33 11 40 21
Insurance expenses 27 13 27 14
Taxes and duties 26 5 32 7
IT and communication expenses 21 12 22 11
Transportation expenses 18 8 20 10
Aircraft rent expenses 12 7 19 9
Consultancy expenses 9 4 10 5
Systems use and associateship expenses 5 3 4 2
Membership fees 2 2 3 3
Utility expenses 2 2 2 2
Other expenses 42 13 57 28
3,966 1,133 6,142 3,171
39
19. SHAREHOLDERS’ EQUITY

The ownership structure of the Company’s share capital is as follows:
30 June 31 December
(Millions of TL) Class % 2020 % 2019
Turkey Wealth Fund (*) A 49.12 678 49.12 678
Republic of Turkey Treasury and
Finance Ministry Privatization C - - - -
Administration (*)
Other (publicly held) A 50.88 702 50.88 702
Paid-in capital (Turkish Lira) 1,380 1,380
Inflation adjustment on share capital
(Turkish Lira) (**) 1,124 1,124
Share capital (Turkish Lira) 2,504 2,504
Share capital (USD Equivalent) 1,597 1,597
(*) 1,644 (full) shares belonging to various private shareholders were not taken into consideration when the
Group was included to the privatization program in 1984. Subsequently, these shares were registered on
behalf of Privatization Administration according to Articles of Association of the Company, approved by
the decision of the Turkish Republic High Planning Board on 30 October 1990.
49.12% share of the Company and its subsidiaries (together the “Group”) owned by Republic of Turkey
Prime Ministry Privatisation Administry has been transferred to Sovereign Wealth Fund of Turkey as of 3
February 2017.
(**) Inflation adjustment on share capital represents inflation uplift of historical capital payments based on
inflation indices until 31 December 2004.
As of 30 June 2020, Registered paid-in share capital of the Company comprised 137,999,999,999 Class A
shares and 1 Class C share, all with a par value of Kr 1 each. The Class C share belongs to the Republic of
Turkey Treasury and Finance Ministry Privatization Administration and has the following privileges:
 Articles of Association 7: Positive vote of the board member representing class C share with
Board’s approval is necessary for transfer of shares issued to the name.
 Articles of Association 10: The Board of Directors consists of nine members of which one member
has to be nominated by the class C shareholder and the rest eight members has to be elected by
class A shareholders.
 Articles of Association 14: The following decisions of the Board of Directors are subject to the
positive vote of the class C Shareholder:
a) Decisions that will negatively affect the Group’s mission Defined in Article 3.1. of the Articles of
Association,
b) Suggesting change in the Articles of Association at General Assembly,
c) Increasing share capital,
d) Approval of transfer of the shares issued to the name and their registration to the “Share Registry”,
e) Every decision or action which directly or indirectly put the Group under commitment over 5% of its
total assets of the latest annual financial statements prepared for Capital Market Board. (This sentence
will expire when the Group’s shares held by Turkish State decrease under 20%.)
40
19. SHAREHOLDERS’ EQUITY (cont’d)
 Articles of Association 14: The following decisions of the Board of Directors are subject to the
positive vote of the class C Shareholder (cont’d):
f) Decisions relating to merges and liquidation,
g) Decisions cancelling flight routes or significantly decreasing frequency of flight routes, not including
the ones that cannot even recover their operational expenses, subject to the market conditions.
Restricted Profit Reserves

Turkish Commercial Code (TCC) stipulates that the general legal reserve is appropriated out of statutory
profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group’s paid-in share capital.
Additionally, not limited with 20% of paid-in share capital, the general legal reserve is appropriated at the
rate of 10% per annum of all cash dividends in excess of 5% of the paid-in share capital. Under TCC, the
legal reserves can only be used to offset losses, to sustain business when conditions get worse, to prevent
unemployment and are not available for any other usage unless they exceed 50% of paid-in share capital.
Foreign Currency Translation Differences
Currency translation differences under equity arise from Group’s joint ventures, provisions for unused
vacation, legal claims and retirement pay liability accounted under equity method which have functional
currencies other than USD.
Distribution of Dividends
Listed companies distribute dividend in accordance with the Communiqué No. II-19.1 issued by the CMB
which is effective from 1 February 2014.
Companies distribute dividends in accordance with their dividend payment policies settled and dividend
payment decision taken in general assembly in accordance with relevant legislations. The communiqué
does not constitute a minimum dividend rate. Companies distribute dividend in accordance with their
dividend policy or articles of associations. In addition, dividend can be distributed by fixed or variable
installments and advance dividend can be paid in accordance with profit on financial statements of the
Group.
Actuarial Differences on Defined Benefit Plans
As a result of the adoption of IAS 19, all actuarial differences are recognized in other comprehensive
income.
Gains/Losses from Cash Flow Hedges
Hedge gain/losses against cash flow risk arise from the accounting of the changes in the fair values of
effective derivative financial instruments designated against financial risks of future cash flows under
equity. Total of deferred gain/loss arising from hedging against financial risk are accounted in profit or loss
when the hedged item impacts profit or loss.
As of 2020, financial lease liabilities in Japanese Yen, Swiss Frank and Euro for investment financing are
designated as cash flow hedge against exchange rate risk due to highly probable future same foreign
currency revenues. Group’s revenue denominated in Euro and Swiss Frank covered borrowings of such
foreign currency, Japanese Yen revenue covered %49 of borrowings. In this context, exchange differences
arising from such these loans repayment are taken to equity and recognized in other comprehensive
income.
41
20. REVENUE
Breakdown of gross profit is as follows:

Passenger revenue
Scheduled 2,096 108 4,951 2,680
Unscheduled 11 7 20 16
Total passenger revenue 2,107 115 4,971 2,696
Cargo revenue
Carried by passenger aircraft 172 9 355 174
Carried by cargo aircraft 1,041 738 444 219
Total cargo revenue 1,213 747 799 393
Total passenger and cargo revenue 3,320 862 5,770 3,089
Technical revenue 86 31 150 80
Other revenue 28 8 29 12
Net sales 3,434 901 5,949 3,181
Cost of sales (-) (3,474) (1,000) (5,257) (2,753)
Gross profit (40) (99) 692 428
Breakdown of total passenger and cargo revenue by geography is as follows:

International flights 30 June 2020 30 June 2020 30 June 2019 30 June 2019
- Far East 1,020 370 1,473 767
- Europe 794 156 1,616 902
- America 589 168 887 484
- Africa 347 74 570 285
- Middle East 306 51 661 347
Total 3,056 819 5,207 2,785
Domestic flights 264 43 563 304
Total passenger and cargo revenue 3,320 862 5,770 3,089
42
21. COST OF SALES
Breakdown of the cost of sales is as follows:

Fuel expenses 985 196 1,836 981
Personnel expenses 475 87 813 412
Aircraft maintenance expenses 310 93 384 192
Ground services expenses 239 55 391 202
Airport expenses 160 31 285 163
Air traffic control expenses 157 34 263 140
Passenger services and catering expenses 144 23 298 157
Wet lease expenses 103 40 140 76
Insurance expenses 25 12 26 14
Rents 24 14 33 15
Transportation expenses 18 8 20 10
Aircraft rent expenses 12 7 19 9
IT & communication expenses 2 2 2 1
Other expenses 13 3 16 7
3,474 1,000 5,257 2,753
22. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES
Breakdown of general administrative expenses is as follows:

Systems use and associateship expenses 5 3 4 2
Rents 5 5 - -
Insurance expenses 2 1 1 -
Utility expenses 2 2 2 2
Taxes and duties 1 - 1 1
Other general administrative expenses 5 - 7 3
116 45 145 73
43
22. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

(cont’d)
Breakdown of selling and marketing expenses is as follows:

Commissions and incentives 110 19 258 116
Advertisement and promotion expenses 51 14 88 41
Reservation systems expenses 43 (3) 144 71
Rents 8 3 9 5
Service expenses 4 - 7 4
Membership fees 2 2 3 3
Other marketing and sales expenses 24 10 34 18
376 88 740 345
23. OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income is as follows:

Manufacturers' credits 72 57 56 22
Insurance, indemnities, penalties income 17 8 18 13
Rent income 6 2 3 2
Non- interest income from banks 5 2 5 2
Turnover premium from suppliers 3 1 2 -
Provisions released 2 1 6 1
Rediscount interest income 2 2 4 1
Delay interest income - - 1 1
Other operating income 11 5 5 3
118 78 100 45
Breakdown of other operating expenses is as follows:

Provisions 8 4 13 10
Foreign exchange losses from
operational activities, net 6 (46) 15 21
IFRS 9 Adjustment 3 4 - -
Indemnity and penalty expenses 3 2 3 2
Other operating expenses 8 - 11 7
28 (36) 42 40
44
24. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES
Breakdown of income from investment activities is as follows:

Income from investment incentives 75 39 44 31
Gain on subsidiaries 8 8 - -
Interest income from financial investment 4 3 35 21
Gain on sale of financial investments 2 1 5 3
Gain on sale of fixed assets 2 1 3 2
91 52 87 57
Breakdown of expense from investment activities is as follows:

Loss on sale of fixed assets - - 79 52
25. FINANCIAL INCOME/ EXPENSES

Breakdown of financial income is as follows:

Rediscount interest income from
repayments of aircrafts 18 4 10 7
Fair value gains on derivative financial
instruments, net 13 13 - 5
Interest income 11 7 16 -
Other financial incomes 4 4 - -
46 28 26 12
Breakdown of financial expenses is as follows:

Interest expense from financial activities 116 57 99 50
Foreign exchange losses on financial
activities, net 106 108 61 24
Interest expense from leasing liabilities 30 15 28 13
Aircraft financing expenses 12 5 10 (3)
Interest expenses on employee benefits 7 3 6 3
Fair value losses on derivative financial
instruments, net (*) - (53) 16 -
Other financial expenses 3 1 3 1
274 136 223 88
(*) As a result of the impact of Covid-19, expected capacity to be operated in 2020 will be lower than
that originally anticipated when fuel hedging derivatives were put in place. Therefore, certain hedging
instruments no longer correspond to future purchases of jet fuel and a part of the hedging relation for
these derivatives has been discontinued. In relation to the instruments, the Group has charged a total
loss of USD 6 because of discontinuation resulting from the over-hedging of fuel hedge to “Financial
Expenses” in profit or loss statement. The associated tax credit in profit and loss statement is USD 1.
45
26. TAX ASSETS AND LIABILITIES
Breakdown of assets related to current tax is as follows:

Prepaid taxes 27 43
Tax income is as follows:

Current period tax expense - - 4 (5)
Deferred tax (income) / expense (16) 79 (117) (54)
Tax income (16) 79 (113) (59)
Tax effect related to other comprehensive income is as follows:
1 January - 30 June 2020 1 January - 30 June 2019

Amount Tax Amount Amount Tax Amount
before tax income after tax before tax expense after tax
Change in cash flow
hedge reserve ( 278) 59 ( 219) 91 ( 20) 71
Losses on Remeasuring
FVOCI ( 4) 1 ( 3) 2 - 2
Change in actuarial
losses from retirement
pay obligation ( 8) 1 ( 7) ( 5) 1 ( 4)
Changes in foreign
currency translation
difference ( 19) - ( 19) ( 10) - ( 10)
Other comprehensive
income ( 309) 61 ( 248) 78 ( 19) 59
There is no taxation effect for the changes in foreign currency translation difference that is included in
other comprehensive income.
Corporate Tax
The effective tax rate is 22%. In accordance with the Article 91 of regulation numbered 7061, published in
Official Gazette on 5 December 2017,"Legislation on Amendment of Certain Tax Legislation and Other
Certain Legislation”, corporate tax rate for the years 2018, 2019 and 2020 has increased from 20% to 22%.
Therefore, deferred tax assets and liabilities as of 30 June 2020 are calculated with 22% tax rate for the
temporary differences which will be realized in 2018, 2019 and 2020, and with 20% tax for those which
will be realized after 2021 and onwards.
The tax legislation provides for a temporary tax of 22% (2019: 22%) to be calculated and paid based on
earnings generated for each quarter for the period ended 30 June 2020. The amounts thus calculated and
paid are offset against the final corporate tax liability for the year. With the amendment to the Law, tax rate
for temporary tax is set to 22% for the years 2018, 2019 and 2020.
46
26. TAX ASSETS AND LIABILITIES (cont’d)
Corporate Tax (cont’d)
In Turkey, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated
tax return. Therefore, provision for taxes, as reflected in the consolidated financial statements, has been
calculated on a separate-entity basis.
Corporate tax losses can be carried forward for a maximum period of five years following the year in which
the losses were incurred. However, losses cannot be carried back for offset against profits from previous
periods. The tax authorities can inspect tax returns and the related accounting records for a retrospective
maximum period of five years.
According to the Corporate Tax Law, 75% of the capital gains arising from the sale of immoveable
properties and participation shares owned for at least two years are exempted from corporate tax on the
condition that such gains are reflected in the equity until the end of the fifth year following the sale. The
remaining 25% of such capital gains are subject to corporate tax. However, according to the amendments
by Law numbered 7061, this rate is reduced from 75% to 50% with regard to immovable properties and tax
declarations starting from 2018 will be calculated using 50% for immovable properties.
Furthermore, there is no procedure for a final and definitive agreement on tax assessments. Companies file
their corporate tax returns between 1-25 April following the close of the accounting year. Tax authorities
may, however, examine such returns and the underlying accounting records and may revise assessments
within five years.
Income Withholding Tax
In addition to corporate taxes, companies should also calculate income withholding taxes and funds
surcharge on any dividends distributed, except for dividend receiving companies who are Turkish residents
and Turkish branches of foreign companies. Income withholding tax rate is 15%. Undistributed dividends
incorporated in share capital are not subject to income withholding tax.
Deferred Tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between
its financial statements as reported for IFRS purposes and its statutory tax financial statements. These
differences usually result in the recognition of revenue and expenses in different reporting periods for IFRS
and tax purposes and they are given below. For calculation of deferred tax asset and liabilities, the
corporate tax rate of 22% is used.
In Turkey, the companies cannot declare a consolidated tax return; therefore, subsidiaries that have
deferred tax assets position were not netted off against subsidiaries that have deferred tax liabilities position
and they are disclosed separately.
47
Deferred Tax (cont’d)
Breakdown of the deferred tax assets / (liabilities) is as follows:

Fixed assets (2,064) (1,910)
Right of use asset (344) (310)
Adjustments for passenger flight liabilities (143) (171)
Tax loss carried forward 652 528
Lease obligations 344 311
Income and expense for future years 96 104
Accruals for expenses 78 69
Change in fair value of derivative instruments 38 4
Provisions for employee benefits 27 28
Incentives 25 17
Miles accruals 20 30
Provisions for unused vacation 10 9
Other (5) (2)
Deferred tax liabilities (1,266) (1,293)
The changes of deferred tax liability for the period ended 1 January – 30 June 2020 and 2019 are as
follows:
30 June 2020 30 June 2019
Opening balance at 1 January 1,293 1,133
Foreign currency translation difference 46 22
Tax income from FVOCI (1) -
Tax (income) / expense from hedging reserves (56) 21
Deferred tax income (16) (117)
Deferred tax liability at the end of the period 1,266 1,059
48
Deferred Tax (cont’d)
Reconciliation with current tax charge for the period 1 January – 30 June 2020 and 2019 are as follows:

Reconciliation of effective tax charge 30 June 2020 30 June 2020 30 June 2019 30 June 2019
Loss from operations before tax (670) (248) (316) (33)
Domestic expense tax rate of 22% 147 54 70 8

Taxation effects on:
- investment incentive 15 7 18 12
- foreign currency translation difference 3 7 33 28
- expense from investment certificates 1 (6) 9 6
- non deductible expenses (3) 1 (4) -
- investments accounted by using
the equity method (15) (12) 2 5
- adjustment for prior year loss (132) (130) (15) -
Tax charge in statement of loss 16 (79) 113 59
27. EARNINGS PER SHARE
Earnings per share disclosed in the consolidated profit or loss and other comprehensive income is
determined by dividing the net income by the weighted average number of shares that have been
outstanding during the relevant period.
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (“bonus
interest”) to existing shareholders from retained earnings. For the purpose of earnings per share
computations, such bonus shares are regarded as issued shares. Accordingly, the weighted average number
of shares outstanding during the years has been adjusted in respect of bonus shares issued without a
corresponding change in resources, by giving them retroactive effect for the period in which they were
issued and for each earlier year.
Number of total shares and calculation of losses per share at 1 January – 30 June 2020 and 2019:
30 June 2020 30 June 2019
Number of shares outstanding at 1 January
(in full) 138,000,000,000 138,000,000,000
Number of shares outstanding at 30 June
(in full) 138,000,000,000 138,000,000,000
Weighted average number of shares outstanding
during the period (in full) 138,000,000,000 138,000,000,000
Net loss for the period (654) (203)
Basic loss per share (Full US Cents) (*) (0.47) (0.15)
Diluted loss per share (Full US Cents) (*) (0.47) (0.15)
(*) Basic and diluted (losses) per share are the same as there are no dilutive potential ordinary shares.
49
28. DERIVATIVE FINANCIAL INSTRUMENTS
Breakdown of derivative financial assets and liabilities of the Group as of 30 June 2020 and 31 December
2019 are as follows:
Derivative financial assets 30 June 2020 31 December 2019

Derivative instruments not subject to hedge
28 17
accounting
Derivative instruments for fuel prices
22 31
cash flow hedge
Derivative instruments for cross currency rate
- 4
cash flow hedge
50 52
Derivative financial liabilities 30 June 2020 31 December 2019

Derivative instruments for fuel prices
167 14
cash flow hedge
Derivative instruments for interest rate
31 35
cash flow hedge
Derivative instruments not subject to hedge
24 18
accounting
Derivative instruments for cross currency rate
2 3
cash flow hedge
224 70
50
29. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS
Foreign currency risk management
Transactions in foreign currencies expose the Group to foreign currency risk. The foreign currency
denominated assets and liabilities as monetary and non-monetary items are below:
30 June 2020
USD
EQUIVALENT TL EUR JPY CHF OTHER
1.Trade Receivables 269 7 26 - 2 234
2a.Monetary Financial Assets 1,511 65 1,388 1 3 54
2b.Non Monetary Financial Assets - - - - - -
3.Other 309 130 88 - 5 86
4.Current Assets (1+2+3) 2,089 202 1,502 1 10 374
5.Trade Receivables - - - - - -
6a.Monetary Financial Assets 522 522 - - - -
7.Other 637 343 286 - - 8
8.Non Current Assets (5+6+7) 1,159 865 286 - - 8
9.Total Assets (4+8) 3,248 1,067 1,788 1 10 382
10.Trade Payables 641 382 204 1 3 51
11.Financial Liabilities (*) 3,239 103 2,885 229 22 -
12a.Other Liabilities, Monetary 134 113 18 1 - 2
12b.Other Liabilities, Non Monetary 56 56 - - - -
13.Current Liabilities (10+11+12) 4,070 654 3,107 231 25 53
14.Trade Payables - - - - - -
15.Financial Liabilities (*) 8,256 - 6,470 1,653 133 -
16a.Other Liabilities, Monetary 27 20 6 - - 1
17.Non Current Liabilities (14+15+16) 8,416 153 6,476 1,653 133 1
18.Total Liabilities (13+17) 12,486 807 9,583 1,884 158 54
19.Net asset / liability position of off-
balance sheet derivatives (19a-19b) - - - - - -
19a.Off-balance sheet foreign currency
derivative assets - - - - - -
19b.Off-balance sheet foreign currency
derivative liabilities - - - - - -
20.Net foreign currency
(9,238) 260 (7,795) (1,883) (148) 328
asset/(liability) position (9-18+19)
21.Net foreign currency asset /
liability position of monetary items
(9,995) (24) (8,169) (1,883) (153) 234
(IFRS 7.B23) (=1+2a+5+6a-10-11-12a
-14-15-16a)
22.Fair value of foreign currency
hedged financial assets - - - - - -
23.Hedged foreign currency assets 836 - 836 - - -
24.Hedged foreign currency liabilities - - - - - -
(*) Net foreign exchange position of Group is mainly due to long term foreign currency borrowings denominated in
Euro, Japanese Yen, Swiss Frank to funds its investments. Group uses these long term foreign currency borrowings to
manage the risk of exchange differences with highly probable future foreign currency revenues. The USD equivalent
of these borrowings amount to 8,419 USD as of 30 June 2020 (31 December 2019: USD 7,385).
51
29. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont’d)
Foreign currency risk management (cont’d)

31 December 2019
USD
EQUIVALENT TL EUR JPY CHF OTHER
1.Trade Receivables 459 33 108 4 7 307
2a.Monetary Financial Assets 2,239 419 1,724 2 3 91
3.Other 407 178 101 - 5 123
4.Current Assets (1+2+3) 3,105 630 1,933 6 15 521
5.Trade Receivables - - - - - -
6a.Monetary Financial Assets 272 272 - - - -
7.Other 505 313 181 - - 11
8.Non Current Assets (5+6+7) 777 585 181 - - 11
9.Total Assets (4+8) 3,882 1,215 2,114 6 15 532
10.Trade Payables 799 474 245 - 4 76
11.Financial Liabilities 2,590 14 2,323 232 21 -
12a.Other Liabilities, Monetary 186 139 43 1 - 3
13.Current Liabilities (10+11+12) 3,627 679 2,611 233 25 79
14.Trade Payables - - - - - -
15.Financial Liabilities 7,767 - 5,901 1,727 139 -
16a.Other Liabilities, Monetary 31 23 6 - - 2
17.Non Current Liabilities (14+15+16) 7,933 158 5,907 1,727 139 2
18.Total Liabilities (13+17) 11,560 837 8,518 1,960 164 81
19.Net asset / liability position of off-
balance sheet derivatives (19a-19b) - - - - - -
19a.Off-balance sheet foreign currency
derivative assets - - - - - -
19b.Off-balance sheet foreign currency
derivative liabilities - - - - - -
20.Net foreign currency asset/(liability)
(7,678) 378 (6,404) (1,954) (149) 451
position (9-18+19)
21.Net foreign currency asset / liability

(8,403) 74 (6,686) (1,954) (154) 317
position of monetary items (IFRS 7.B23)
(=1+2a+5+6a-10-11-12a-14-15-16a)
22.Fair value of foreign currency hedged
financial assets - - - - - -
23.Hedged foreign currency assets 924 - 924 - - -
24.Hedged foreign currency liabilities - - - - - -
52
The Group is exposed to foreign exchange risk primarily from TL, EURO, JPY and CHF. The following
table details the Group’s sensitivity to a 10% increase and decrease in TL,EURO, JPY and CHF.10% is the
sensitivity rate used when reporting foreign currency risk internally to key management and represents
management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis include
only outstanding foreign currency denominated monetary items and adjusts their translation at the period
end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as
loans to foreign operations within the Group where the denomination of the loan is in a currency other than
the currency of the lender or the borrower. A positive number indicates an increase in profit or loss with a
same effect on equity. The Group accounted investment loans and aircraft financial liabilities in scope of
cash flow hedge accounting and foreign exchange income/expense arising from these loans and liabilities
are recognized in equity. 10% increase and decrease effect of foreign exchange rates are calculated with the
same method and the calculated foreign exchange gains/losses are presented as hedged portion in the
foreign exchange sensitivity table. Furthermore, the hedged portion of foreign exchange gains/losses via
forwards and cross currency swap transactions is classified as the amount hedged against USD in the
statement of exchange rate sensitivity analysis.
30 June 2020
Profit / (Loss)
Before Tax Equity
If foreign If foreign If foreign If foreign
currency currency currency currency
appreciated depreciated appreciated depreciated
10 % 10 % 10 % 10 %
1- TL net asset / liability 26 (26) - -

2- Part hedged from TL risk (-) - - - -
3- TL net effect (1+2) 26 (26) - -
4- Euro net asset / liability (46) 46 (734) 734

5- Part hedged from Euro risk (-) 84 (84) - -
6- Euro net effect (4+5) 38 (38) (734) 734
7- JPY net asset / liability (85) 85 (103) 103

8- Part hedged from JPY risk (-) - -
9- JPY net effect (7+8) (85) 85 (103) 103
10- CHF net asset / liability - - (15) 15

11- Part hedged from CHF risk (-) - - - -
12- CHF net effect (10+11) - - (15) 15
13- Other foreign currency net asset / liability 33 (33) - -

14- Part hedged other foreign currency risk (-) - - - -
15- Other foreign currency net effect (13+14) 33 (33) - -
TOTAL (3 + 6 + 9 + 12 + 15) 12 (12) (852) 852
53
31 December 2019
Profit / (Loss)
Before Tax Equity
If foreign If foreign If foreign If foreign
currency currency currency currency
appreciated depreciated appreciated depreciated
10 % 10 % 10 % 10 %
1- TL net asset / liability 38 (38) - -

2- Part hedged from TL risk (-) - - - -
3- TL net effect (1+2) 38 (38) - -
4- Euro net asset / liability 59 (59) (699) 699

5- Part hedged from Euro risk (-) (92) 92 - -
6- Euro net effect (4+5) (33) 33 (699) 699
7- JPY net asset / liability (101) 101 (94) 94

8- Part hedged from JPY risk (-) - - - -
9- JPY net effect (7+8) (101) 101 (94) 94
10- CHF net asset / liability 1 (1) (16) 16

11- Part hedged from CHF risk (-) - - - -
12- CHF net effect (10+11) 1 (1) (16) 16
13- Other foreign currency net asset / liability 45 (45) - -

14- Part hedged other foreign currency risk (-) - - - -
15- Other foreign currency net effect (13+14) 45 (45) - -
TOTAL (3 + 6 + 9 + 12 + 15) (50) 50 (809) 809
30. EVENTS AFTER THE BALANCE SHEET DATE
Due to Covid-19 pandemic impact, the Company is considering adjustments in the wages of employees.
The negotiations between Hava-İş Union and the Company is continuing as of 13 August 2020.
54

2020 6 Months Financial Statements Usd Imzali

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TÜRK HAVA YOLLARI ANONİM

ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim

Reviewed Not Reviewed Reviewed Not Reviewed

Reviewed Not Reviewed Reviewed Not Reviewed

Items That May Be Reclassified Subsequently To

Items That Will Not

Fair Value Gains

Items That Will Not

Fair Value Gains

1. GROUP ORGANIZATION AND ITS OPERATIONS

30 June 2020 31 December 2019

Subsidiaries and Joint Ventures

Ownership Rate Country of

1. GROUP ORGANIZATION AND ITS OPERATIONS (cont’d)

Subsidiaries and Joint Ventures (cont’d)

Ownership Share and Voting Power

THY DO&CO İkram Hizmetleri A.Ş. Catering

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation

Adjustment of Financial Statements in Hyperinflationary Periods

Functional and Reporting Currency

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)

2.1 Basis of Presentation (cont’d)

The Group measures goodwill at the acquisition date as:

- the fair value of the consideration transferred; plus

- the recognized amount of any non-controlling interests in the acquire; plus

2.2 Changes and Errors in Accounting Policies Estimates

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)

2.3 Summary of Significant Accounting Policies

2.4 New and Revised Standards and Interpretations

a) Standards, amendments and interpretations applicable as at 30 June 2020:

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)

2.4 New and Revised Standards and Interpretations (cont’d)

Amendments to IAS 1, Presentation of financial statements’ on classification of liabilities; effective

o Amendments to IFRS 3, ‘Business combinations’ update a reference in IFRS 3 to the

Annual improvements make minor amendments to IFRS 1, ‘First-time Adoption of IFRS’,

2.5 Determination of Fair Values

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)

2.6 Impact of Covid-19 Pandemic on Group Activities

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)

2.6 Impact of Covid-19 Pandemic on Group Activities (cont’d)

Accounting estimates and assumptions

Due to COVID-19 pandemic, THY reviewed accounting estimates and assumptions.

Discontinuation of Sun Express Deutschland operations

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD

1 January - 1 April - 1 January - 1 April -

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d)

1 January - 1 April - 1 January - 1 April -

1 January - 1 April - 1 January - 1 April -

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d)

1 January - 1 April - 1 January - 1 April -

1 January - 1 April - 1 January - 1 April -

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d)

1 January - 1 April - 1 January - 1 April -

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d)

1 January - 1 April - 1 January - 1 April -

1 January - 1 April - 1 January - 1 April -

Air Transport (“Aviation”)