FINANCIAL DATA

> January – June 2010

OPERATIONAL DATA
> January – June 2010

Disclaimer
This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Turkish Airlines A.O (the “Company”) or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group nor shall it or any part of it form the basis of or be relied on in connection with any contract, investment decision or commitment whatsoever. This presentation has been made to you solely for your information and background and is subject to amendment. This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company. This presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties set forth in the Company’s Offering Memorandum, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm analyst expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

02.09.2010

2

Speakers
Temel KOTİL, Ph.D.
CEO, Turkish Airlines
› Started his Turkish Airlines career in March 2003 as Executive Vice

President (Technical) and was appointed as CEO in April 2005
› Ph.D. in Mechanical Engineering University of Michigan, USA › M.Sc. in Mechanical Engineering University of Michigan, USA › M.Sc. in Aerospace Engineering University of Michigan, USA › B.Sc. in Aerospace Engineering, Istanbul Technical University, Istanbul › Board Member of IATA, Turkish Airlines Inc, Turkish Airlines Technical

Inc.
› Chairman of the Board of Sun Express Inc.

3

Speakers
COŞKUN KILIÇ,
CFO, Turkish Airlines
› CFO as of March 2006
› M.Sc. in Finance, Urbana Champaign Illinois University, USA › M.A. Economics, Ankara University › Certified Public Accountant

› Board Member of Sun Express
› Board Member of THY Opet Havacılık Yakıtları A.S. › Auditor of THY Technic A.S.

4

1 4.5 0.0 -5.7 19.0 Jan-June'10 26.3 24.1 TK 5.3 TK Jan-June'10 10.6 -3.0 54.9 AEA -0.5 2007 7.3 -3.4 9.2 12.5 -20.9 TK 12.9 19.4 0.7 AEA 4.6 10.0 4.0 -20.1 -5.7 25.9 1.9 2008 2009 Jan-June'10 AEA 1.5 Middle East THY vs AEA 30.6 3.3 22.0 -10.0 Source: AEA Total %Change TK 12.2 61.0 80.7 3.3 -5.3 28.7 -0.6 12.0 40.9 28.4 AEA -6.5 9.3 29.9 1.9 -0.7 TK PAX ASK RPK 15.8 2008 AEA 0.5 7.8 55.1 15.6 7.5 11.0 13.4 2.0 30.0 13.1 TK 18.0 30.8 16.3 -0.4 22.2 -5.6 11.8 -4.6 6.4 8.5 14.5 -5.7 2007 AEA 5.6 20.7 6.9 AEA TK AEA 0.7 3.5 10.2 5.0 14.8 26.0 TK 11.3 11.6 13.7 -5.1 Jan-June'10 -20.3 2009 AEA -6.6 13.0 40.0 3.1 19.5 11.0 4.0 60.0 20.0 0.2 0.2 20.5 18.0 Far East .0 0.0 TK 17.0 20.6 35.9 2007 28.9 3.0 TK AEA 4.0 Europe 40.0 20.2 0.4 TK 22.3 -1.1 2007 AEA TK TK 2008 2008 AEA AEA TK TK 2009 2009 AEA TK AEA 0.4 AEA 22.9 8.2 -4.0 15.3 19.0 1.0 40.

PETERSBURG YEKATERINBURG UFA SOCHI NOVOSIBIRSK AMSTERDAM ATHENS BAKU OTHERS (30) BUCHAREST BUDAPEST CHISINAOU COPENHAGEN DUBLIN GOTEBORG HELSINKI LEFKOSE LISBON LJUBLIANA MINSK OSLO PRAG RIGA PRISTINA SARAJEVO SKOPJE SOFIA STOCKHOLM TBILISI TIRANA VIENNA ZAGREB WARSAW NAXCIVAN BASRA ERBIL SHIRAZ PODGORICA Planning for 2010 BATUM BELGRAD BRUSSELS 6 . LOS ANGELES EUROPE (70) GERMANY (9) BERLIN STUTTGART DUSSELDORF FRANKFURT HAMBURG HANNOVER COLOGNE MUNICH NUREMBERG FAR EAST (18) ALMATY ASKGABAD ASTANA BANGKOK BEIJING BISHKEK DUSHANBE HONG KONG JAKARTA KARACHI MUMBAI NEW DELHI SHANGHAI SEOUL SINGAPORE TASHKENT TOKYO OSAKA UKRAINE (6) ODESSA KIEV SIMFEROPOL DONETSK DNEPROPETROVSK LVOV U.K.C.Destinations: 127 International Lines AMERICAS (4) CHICAGO NEW YORK SAO PAULO WASHINGTON D. (3) LONDON MANCHESTER BIRMINGHAM FRANCE (3) PARIS NICE LYON CANADA (1) TORONTO SWITZERLAND (3) BASEL ZURICH GENEVA ITALY (4) MILAN ROME VENICE BOLOGNA AFRICA (16) ADISABABA ALGIERS BENGHAZI CAIRO CAPETOWN CASABLANCA DAKAR KHARTOUM JOHANNESBURG LAGOS NAIROBI TRIPOLI TUNUS ALEXANDRIA DAR ES SALAAM ENTEBBE ACCRA ORAN HO-CHI-MINH MIDDLE EAST (19) ABU DHABI ALEPPO AMMAN BAGHDAD BAHRAIN BEIRUT DAMASCUS DOHA DUBAI JEDDAH KUWAIT MASHAD MADINAH MUSCAT RIYADH SANAA TABRIZ TEHRAN TEL AVIV SPAIN (2) BARCELONA MADRID RUSSIA (7) MOSCOW ROSTOV KAZAN ST.

ANTEP MALATYA ELAZIĞ DİYARBAKIR BATMAN MARDİN VAN Ş.URFA HATAY 7 .MARAŞ ADIYAMAN ADANA G.Destinations: 39 Domestic Lines ÇORLU İSTANBUL SİNOP İSTANBUL SAMSUN MERZİFON TRABZON ERZURUM SİVAS ERZİNCAN MUŞ AĞRI KARS ÇANAKKALE BALIKESİR BURSA ESKİŞEHİR ANKARA UŞAK İZMİR DENİZLİ BODRUM DALAMAN ANTALYA ISPARTA KONYA NEVŞEHİR KAYSERİ K.

6 mn pax 16.9 mn pax 2005.153 Aircraft 4.103 2.132 3.1 mn pax 5.1 mn pax 22.101 2006.000 2004-73 2003.000 19.000 25.6 mn pax 2010F .83 2007 .127 2009 .000 14.Network Mapping Weekly Frequency 6.000 31.000 90 8 Destination 100 110 120 130 140 150 160 170 180 .4 mn pax 1.1 mn pax 11.65 10.9 mn pax 2008 .

6 70.1 76.1 5 7.1 11.5 9.7 20% 5.9 8.2 10.5 9.4 6.9 8.1 72.7 73.5 4.0 8.4 International Passengers (mn) 13.6 73.1 50 25.8 33.3 10 0 0 2005 2006 2007 2008 2009 1H'09 1H'10 40 21.0 3.0 1H'10 2005 2006 2007 2008 2009 1H'09 Domestic Passengers (mn) 15 10 15 11.1 80 70 50 40 (Billion) 71.3 29.0 5.2 3.Passenger Traffic Domestic ASK RPK L/F (%) International ASK RPK L/F (%) 10 73.7 19% 5.5 80 70 60 (Billion) 8.5 24.0 10 6.2 73.9 27.9 6.4 6.1 71.9 7.1 30 37.8 4.1 1H'10 7.2 14.4 18.4 75.0 75.3 17.8 20.0 5 0 2005 9 2006 2007 2008 2009 5 0 1H'09 1H'10 2005 2006 2007 2008 2009 1H'09 (%) 50 40 20 .3 5.6 67.4 11.6 75.1 5.2 33.2 60 (%) 5.8 47.3 66.8 24.

7 72.8% up by 19.7 73.5% up by 19.1 80 72.3% up by 4.9 70.0 points 70 60 57 30 37 34 20 42 46 RPK Passenger # ('000) L/F 40 30 25 30 25 30 0 2005 2006 2007 2008 2009 1H'09 1H'10 17 10 21 22 10 (%) 50 40 .9 68.9% up by 26.5 68.1 THY Passenger Traffic 1H2009 vs 1H2010 Landing ASK up by 16.Passenger Traffic Capacity-Traffic Development Load Factor % ASK RPK L/F % 60 50 40 (Billion) 71.

228 2.800 1.449 2.323 891 406 2.860 308 321 3.500 1.518 +% 36 1.000 2.199 2.271 369 3.407 178 950 232 1.247 1.500 2.216 622 1.000 500 0 1.240 1.208 1.266 1.Revenues and Expenses Total Revenues (Mn€) Other International Domestic Total Expenses (Mn€) Other Personnel Fuel 3.276 572 661 976 656 711 719 316 288 502 436 441 401 471 598 679 636 279 349 0 2005 2006 2007 2008 2009 1H'09 1H'10 2005 2006 2007 2008 2009 1H'09 1H'10 Source: Financial statements released under Turkish CMB standards.468 3.885 1.000 500 1.500 251 1.177 2.000 2.500 3.857 2.000 +% 32 1. converted to € Euro using average exchange rates Able to Sustain Revenue Growth While Increasing Capacity 11 .000 1.837 2.814 1.734 373 2.132 928 452 614 1.500 2.804 1.

(1H ’10) Revenues Split Cargo 7.7% Europe 35% America 6% Source: Financial statements released under Turkish CMB standards. East 13% Africa 6% Other 0. converted to € Euro using average exchange rates Passenger Revenue from Middle East and Africa regions are increasing 12 .0% Passenger Revenues Split by Geography Domestic 21% Far East 18% M.8% Pax Revenue 87.Revenues.5% Charter 4.

12. 46.3% Middle East. Traffic Breakdown by Geography Market Shares International Far East.(Jan-June’10) Int’l.1% Other Turkish Carriers 36% THY 64% Increasing Market Share in International Traffic 13 . 28.2% America.9% Africa.3% THY 60% Foreign Carriers 31% Domestic Other Turkish Carriers 9% Europe. 2. 10.Passenger Breakdown.

53% 6.56% 5.69% THY ranks fourth in passenger market share.26% 5.91% 5.21% 8% 6.05% 2.22% 4.90% 3.24% 3.78% 4.22% 6% 4.65% 3.15% 5.31% 3. fifth in ASK and sixth in RPK market share among AEA member airlines 4.14% 7.Market Share THY Market Share Among AEA Airlines (January-December) ASK % RPK % PAX % 10% 8.14% 4% 2% 0% 3.91% 2005 2006 2007 2008 2009 1H'10 Source: AEA 14 .

000. int‟t to int‟l passengers increased by 26.180 1.000. During Jan-June 2010.500. with an increase of 16.000 500.000 3.000 1.895 4.318 42% 40% 43% 38% 1.000.500.814 3.000 3.841.000.000 4. › Int‟l to int‟l transfer passengers‟ share in total transfer passengers is 49.313.254 2.000 4.000 2.228.0% compared to the same period of 2009.128.500.313.500.133.000 2.563.114 transfer passengers during JanJune 2010.9% of the passenger traffic. › Total transfer passengers accounted for 35.527 › THY carried total of 4.000.716.167 26% 2.180 Significant increase in Int’l to Int’l Transfer Passengers 15 .000 0 2005 2006 2007 2008 2009 1H'09 1H'10 1.Transfer Passengers Int’l to Int’l Transfer Passengers (2005 – 2009) 5.000 1.445.0%.0% reaching to 2.

46 › As of 18th August 2010.68 7. 16 .022 4 528 0 65 53 19.5 3.962 15 6 4.16 6.78 3.04 4.34 13.3 4. › Seat capacity increased by 8. total fleet reached to 142. with an average age of 6.3 18.46 years.446 4 1. * 2 wet-lease aircaft is not included.248 7 5 8 5.596 14 1.7% during Jan-July 2010 compared to the same period of 2009.03 8.55 22.812 7 2 2.900 Fleet Age 5.3 4.5 5.394 3 1 10 7% 70 49% 62 44% 24.506 38 13 8.986 2 300 12 13 3.Fleet Development Fleet as of 18th August 2010 Type A330-200 Wide Body A340 14% B777-3ER Total B737-800 B737-700 B737-400 Narrow Body A320 83% A321 A319 Total Cargo A310 TOTAL % Total 7 9 4 20 52 14 2 25 21 4 118 4 142 Financial Operational Seat Owned Lease Lease Capacity 5 2 1.

883 * Includes operational lease aircraft which are not included in the Fleet Plan of 105 aircraft. 17 .13 left to be decided. Wide Body decision was made to purchase total of 105 aircraft: › WB Long-Haul: 25 firm/10 optional = 35 › 12/ B777-300ER and 10/A330 ordered.Fleet Development Fleet Additions of 105 Aircraft Type B777-3ER A330-300 Total B737-900ER B737-800 Narrow Body B737-700 B737-400 A321-200 A319-100 2010 5 4 9 2011 7 3 10 2 2 8 6 2012 3 3 4 5 6 2013 0 2 2 2014 0 2 1 TOTAL 12 10 22 10 10 0 0 14 6 › According to the Fleet Plan for 2009-2023.995 34.891 31. › Total PDP payment for firm orders will be 1 10 1 29 18 4 3 approximately around 1.7 bn $ Year End* Fleet & Seat Capacity After Additions & Exits 2010 2011 2012 2013 2014 Fleet* 153 175 186 185 182 Seat Capacity 27.66 bn$ for the firm orders. 6/A319-100. › NB Medium-Haul:50 firm/20 optional = 70 › Firm order of.14/A321-200.275 33. Including the options this a mount will be 2. 5 left to be decided. Total TOTAL Optional Cargo TOTAL A319/A321 B737-800/900ER Total A330-200F 0 9 18 28 15 18 4 4 3 3 40 62 10 15 25 2 89 10/ B737-800 and 10/ B737-900 ER Optional order of 10 A319/A321 and 15/ B737-800/900ER.215 34.

36 11. 2006 2007 2008 2009 1H'09 1H'10 ASK was only €1.16 11.49 14.6% 15.0 Personnel efficiency is the key driven while increasing fleet size 13.606 1.26 cents for the first half of 2010.32 11. › Personnel cost of THY per 2005 * THY Technic Personnel is included.38 Average Daily Flight Utilization (hrs) WB Long-Haul NB Medium Haul rising in recent years due to better fleet composition and a more dynamic scheduling process.269 14. › Aircraft utilization has been 1.0 12.271 Passenger per Employee 1.40 8.807 efficiency compared to its competitors.05 10.934 › THY enjoys high personnel 8.000 12.Operating Efficiency 16.672 8.644 10% 766 1H'09 841 700 200 2005 2006 2007 2008 2009 1H'10 16.000 4.000 11. respectively.700 1.0 18 2005 2006 2007 2008 2009 1H'09 10.00 11.26 12. the utilization increase in wide body and narrow body aircraft was 28% and 16%.072 14. As of June 2010.121 12.516 1.951 Number of Personnel* 15.323 10.18 10.0 12. 1.000 12.01 .32 11.0 14.200 1.47 1H'10 12.31 12.

Cost per ASK (€ ) 1H'09 288 316 117 125 120 83 75 81 82 14 12 11 1. 19 .93 % in Total 28% 23% 9% 8% 8% 6% 6% 5% 6% 1% 1% 1% 10/'09 % 74% 28% 31% 12% 20% 36% 33% 12% 26% 72% 30% -16% 36% 13% Total expenses increased by 36%.23 % in Total 22% 24% 9% 9% 9% 6% 6% 6% 6% 1% 1% 1% 1H'10 502 406 153 139 144 112 99 91 104 24 16 9 1.800 5.Operating Expenses Total Expenses (€ Mn) Fuel Personnel Sales and Marketing Rents Landing Ground handling Passenger Catering Depreciation Maintenance Others General Administration Insurance TOTAL Op.323 5. mainly due to increasing fuel costs.

10 5.Operating Expenses-Unit Cost Cost Per ASK (€ cent) 1H’10 CASK Personel/ASK Fuel/ASK Change in CASK(€ cent) 1Q’10 8.26 1.34 1.16 1.66 1.59 1.56 1.0 2.93 20% 10% 0% 2006 1.12 5.95 5.47 1.26 1. converted to € Euro using average exchange rates 20 .22 1.11 6.0 6.71 6.05 5.0 4.0 - -10% -20% -5% -5% -6% 2007 -5% -6% 2008 2009 -16% -16% -16% 1Q'10 2005 2006 2007 2008 2009 1H'10 Source: Financial statements released under Turkish CMB standards.45 1.37 Domestic International Total 1% 7% 6% 4% 5%5% 3% 2.

7 9.3€cent) are based on airline business only.75 2.5 0.39 3.5 9. THY is the most cost efficient among its European Peers 21 .38 2.S.5 2.9€cent) and SQ (Group 7.99 1.26 1.62 8.67 1.5 11.07 7.91 2.72 9.5 4.93 Cost Per ASK (€ Cent)-1H’10 CASK Personel/ASK Fuel/ASK 10 5 0 4.84 7.7 12.67 2.21 1.62 7.9 10.2 6.91 1.22 1.88 2.6 7.5 6.56 TK P.84 1.5 8.8 7.46 2. LH (Group 12.1 7.25 SAS AF* LH *April‟10-June‟10 (Q „10 Results ) AY IB BA* LAN CA SQ* TK SAS AF* LH AY IB BA* LAN CA SQ 0.09 2.3 6.02 5.Peer Group vs THY Operating Costs per ASK (€ Cent)-1H’10 15 11.15 1. Others based on Group financials.6 8.0 5.72 9.14 0.18 6.33 6.841.

Financial Highlights Change in R/Y (€ cent) 1Q’10 Domestic International Total Change in RASK (€ cent) 1Q’10 20% 20% Domestic International Total 10% 5% 2% 8% 10% 6% 10% 7% 2% 7% 8% 6% 5% 3% 1% 6% 6% 5% 5% -3% 0% 2009 -14% -13% -16% 0% 2006 2008 1Q'10 -3% -3% 1% 2007 2008 2009 -16% -17% -18% 1Q'10 2006 -10% -9% 2007 -10% -20% -6% -5% -20% Source: Financial statements released under Turkish CMB standards. converted to € Euro using average exchange rates 22 .

3 2008 3.7 290 20.5 › Increase in fuel costs had a negative impact on EBITDAR.5 391 12.271 260 7.8 3. 20.6 11.1 10/'09 % 32% 190% -4.3 2009 3.8 802 24.734 149 5.4 84 6.2 22.0 165 11.4 57 3.5 366 16.0 pt -1% -3.1 235 10.0 287 15.9 678 24.4 48 2.6 15.4 490 17.5 24.0 2005 2006 2007 2008 2009 1H'09 1H'10 * CAGR= Compounded Average Growth Rate (€ Euro Mn) Revenue Net Income Net Income Margin (%) EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%) EV/EBITDAR (x) 2006 2.3 pt -10% -2.407 48 3.0 CAGR (2005-2009): 20.857 138 7.9 1H'09 1.8 548 16.247 99 4.1 541 16.6 pt -32% -0.5 16.3 10.0 17.0 24.8 20.3 5.EBITDAR Margin EBITDAR Margin % ( 1H’10) 30.5 4.9 387 11.5 285 10.1 148 8.3 2007 2.5 3.8 727 22.8 pt 23 .1% 0.5 14.228 598 18.6 pt 2.3 1H'10 1.

193 897 3.5 THY has a higher EBITDAR margin.0 29.2% 1250 205 29.2% 17 1.2% CA RYR 4.3% 267 4.3% 977 181 23.5% LH 9.5% AY 955 1.9 5.3% 20.5 › THY recorded profit of 138 mn.9% 347 21.7% 171 7.327 -21 -50 -3.639 1.9% 80 4.0 25.Peer Group vs THY EBITDAR Margin % Comparison (1H’10) 30.8 22.7% 484 8.0 5.1% -113 -5. 1Q‟10 Results (€ Euro Mn) Revenue Expense Net Income EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%) TK 1857 1800 138 57 3.8% 13.5 › Compared to its competitors.0 10.486 122 209 12.280 2.2% 36 1.7% IB 2.3% BA 2. * April ‟10-June ‟10.4% 346 20.0 20.7 21.6% 175 1. Others based on Group Financials.388 2.5% LAN 1. CA RYR* LAN SQ* TK AF* IB BA* SAS AY LH P.699 777 568 94 494 119 11. 8.960 -127 -164 -8.477 -150 -89 -3.721 5.4% 385 22.2%) and SQ (Group 23%) are based on airline business only.2 15.035 1.3 7.9% SQ 1.5% SAS 2.5 8.007 -50 -40 -4.S.8% 22.9% AF 5. € in 1H 2010.8% 336 3.695 1.559 127 80 4.875 736 -132 -2.1% 148 8.7% -89 -3.9 22.8% 53 5. 3.5% 119 5.6% 190 8.0 15.0% 287 15. LH (Group 8.567 10.2 5.2% 24 .572 -104 -342 -3.

with the Fuel Cost Per ASK (€ Cent)-1H’10 3.56 help of its‟ young fleet and Fuel Saving Program which started in April 2008. THY saved 11.38 2.0 2.60 3. › Due to fleet expansion. 0.55 THY Fleet 1H’10 3.99 1.21) and SQ (Group 2.67 1.47 › THY‟s fuel expense per ASK is lower on the average compared to its peer group. 25 . Others based on Group Financials. › As of June 2010.20 3.00 3. the fleet average age will be lower which in return will increase THY‟s fuel efficiency.67 1.00 2. LH (Group 2.55 3.0 Litres/100 ASK 3.67 3.25 2. 1Q‟10 Results Source: Company annual reports & websites.09 1.58) are based on airline business only.341 tons. Fleet expansion will reduce fuel cost as well as fleet age * April‟10 June‟10.84 Average Specific Fuel Consumption 3.40 3.0 AF* BA* LAN CA LH SQ* SAS AY IB TK P.80 3.14 2.80 2.60 2005 2006 2007 2008 2009 1H'09 1H'10 7.S.46 3.91 1.854 tons of fuel and reduced CO2 Emission by 37.22 2.7% reduction since 2005 3.60 3.Fuel 4.

16% EURO. 13% › THY‟s income is diversified among the major currencies. 49% TRY. 33% Currency exposure risk is minimized due to efficient cash management EURO. 7% USD. TRY. 35% Expenses by Currency (1H’10) Other. 11% 26 . 36% USD.Currency Breakdown Revenue by Currency (1H’10) Other.

(15) 32 28 31 70 42 54 50 25 1 18 31 35 21 37 1 1 23 46 1 2 39 57 48 26 15 21 1 75 54 8 1 84 7 1 35 THY ranked No.Sector Comparison SCORE RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 COMPANY Türk Hava Yolları A. DATE Dec 09 Mar. Qantas Airways Ltd Thai Airways International Deutsche Lufthansa AG Iberia Lineas Aereas De Espana SA Gol Linhas Aereas Inteligentes SA Sas Ab. Singapore Airlines Ltd Hawaiian Holdings Inc.1 in the financial health* category * Representing a measure of an airline's overall financial strength based on assessments of solvency. fixed-charge coverage. Air France-KLM Pakistan International Airlines China Southern Airlines Co Ltd Asiana Airline Inc.O.Stockholm Air Canada Finnair OYJ UAL Corp EVA Airways Corp Korean Air Lines Co. operating income margin and debt service cover. Alaska Air Group Inc Copa Lan Airlines SA Cathay Pasific Airways Ltd TAM SA Aer Lingus Group PLc Air New Zeland Ltd Continantal Airlines Inc US Airways Group Inc. mix of debt and equity capital. (14) 31 48 22 25 56 34 45 31 10 15 46 40 35 27 38 13 75 21 22 14 55 1 27 17 53 13 26 26 34 28 38 10 23 8 13 ASSET MGT. Ltd.Ltd All Nippon Airways Co Ltd Ana Delta Air Lines Malaysian Airlines System Berhad British Airways PLC China Airlines Air China Ltd AMR Corp. Source:Aviation Week 2010 .10 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Dec 09 Dec 09 FINANCIAL HEALTH 80 69 64 59 59 56 53 49 46 40 39 39 38 38 36 35 34 32 32 31 30 30 29 27 25 24 24 23 23 22 21 16 13 13 1 TOTAL SCORE (8) EARNINGS LIQUIDITY(14) FUEL MGT. (13) 38 33 99 53 51 87 36 38 14 33 50 61 28 34 19 11 52 30 49 22 55 40 27 13 36 39 19 34 1 25 22 50 29 22 27 55 73 56 76 53 59 66 50 47 53 44 37 58 42 56 46 40 55 31 43 42 31 41 44 32 49 39 43 38 32 26 34 21 12 39 48 83 44 61 59 45 51 42 67 66 42 20 78 28 84 85 43 47 37 70 30 12 25 57 29 59 60 28 16 46 48 12 22 15 41 PERF. current ratio. China Eastern Airlies Corp.

by passengers carried. › Won award for the Best Airline in Southern Europe and World's Best Economy Class Onboard Catering at the 2010 World Airline Awards. › Turkey only 3hrs flight from 50 different countries › Increased focus on transit flights since 2002 › Increased focus on Business Class passengers since 2006 › Official sponsor of FC Barcelona. Manchester United Football Club & Maroussi Basketball Club. 28 .Company Overview › Blessed by its prime location. › Included in MSCI Indices as of November 2009. › Substantial cost advantage over competitors. › Member of Star Alliance. › Ranks # 4 among AEA members.

Coşkun KILIÇ / CFO Ms.Coşkun KILIÇ /+90 212-463-6363/3630 Tel: +90 212-463-6363 E-mail: ir@thy.Suna ÇELEBİ/IR Manager THANKYOU YOU THANK Tel: CFO Mr.› January – June 2009 › January – August 2009 Turkish Airlines Inc. Turkish Airlines Inc. Investor Relations Department Mr.com .

destinations with › During 1H‟10 posted revenue was 144 million Euro. › Operates 22 destinations with its 4 A310-300 freighters besides 158 137 passenger aircraft. carried cargo was 151.Cargo Transportation TURKISH CARGO › Turkish Cargo › Leading cargo carrier in total export and import cargo in Turkey.654 tons. › 30 .

Cargo Revenue Cargo Revenue (€ Mn) 250 200 150 62% › Cargo revenue has increased by 62% in the first halfof 2010 compared to the same period of 2009. 160 175 179 100 50 0 201 206 2005 2006 2007 2008 2009 1H'09 89 1H'10 144 Plans to Enlarge Freighter Fleet Aiming Higher Cargo Revenues 31 .

586 2009 0 17.073 2007 37.864 30. indicating 50% increase compared to the same period of 2009. THY has 100.380 2006 39. 201.000 lines is increasing over the last two years.070 83.000 International Domestic › Cargo carried in international 200. 87% of carried cargo was from the international segment.653 126.000 50% › As of June 2010. 50.Cargo 250.158 132.000 33. As of June 2010.584 1H'10 32 .000 carried total of 151.321 2005 (Tons) 150.732 2008 36.492 145.404 1H'09 19.149 161.474 114.654 tons cargo.Cargo Transportation THY .

000 60% 57% 300.956 55% 80% 60% (Tons) 44% 331. having 57% market 450. has increased its market share to 60% as of June 2010.000 48% 382.572 398.890 182.060 246. › According to the Fleet Plan. 40% 238. which will be received in the year 2010 and 2011.722 46% share in Turkish cargo market by the end of 2009.040 183. 33 .245 100.480 50% 417.135 150.116 348.Turkish Cargo vs THY Turkish Market THY THY Market Share › THY.974 159.284 148.873 20% 0 2005 2006 2007 2008 2009 1H'09 1H'10 0% decision made to purchase 2 Airbus cargo aircraft A330-200F.052 198.000 144.

THY Academy › THY ACADEMY( To be Established) › One of the most outstanding training centers in the › Gives training at the areas which are given below:  Technic: including Airbus. RJ70/100 trainings › Has been applying ISO 9001 Quality Management System since 1998. 34 .000 people each year  Ticketing  Cargo Operations  Passenger Services  Ground Handling  Computer  Personal Development and Quality with its trainers. specialized in their areas. › Addresses the training needs of cargo and passenger agents. Boeing and aviation industry. universities and other airlines besides Turkish Airlines.  Reservation › Gives training services about 10.

So far.A320-A330/340) will be in service as of 2010 35 . 66 students have graduated from the Academy and started flying at Turkish Airlines. but also other airlines. › A340 ”Business class”. › Currently 51 pilot candidates are given training at the Academy. › Started training with 16 pilot candidates on › THY not only address airlines within co-partnerships. hours ground training. B737 “Economy Class” Cabin Service Trainer(CST)B737/A310/A340 Cabin Emergency Evacuation Trainer(CEET) › Ground Training › Turkish Flight Academy 2 new simulators (Boeing 777-300ER . need for new flight personnel for THY. B737-800 and A320s aircraft. › Giving 210 hours flight training and 1200 › 5 full flight simulators for RJ-100. › Turkish Airlines Flight Training Center offers: › Cockpit Crew Training › Cabin Crew Training › Simulators May 2006. B737-400. certified by Type Rating › Turkish Flight Academy › Founded on November 2004 as a result of a Training Organization (TRTO) offers training in line with the standards of JAR-FCL.THY Academy › THY Flight Training › Turkey's sole flight training center.

008 2.824 1H'10 199 320 512 355 1. year-end EURO exchange rates were used 36 .362 110 2.307 67 154 1.528 82 781 0 2 0 0 530 1.010 4 0 0 -336 97 869 2.882 2.395 3.187 85 243 1.402 2006 197 135 241 573 1.878 2008 236 163 825 1.822 2.695 2008 196 203 228 146 773 1.672 3.657 224 1.968 2009 191 260 272 180 902 1.395 2007 281 144 445 870 1.180 5 0 0 -596 87 786 2.402 2005 113 161 149 332 755 540 72 249 861 110 1.968 1H'10 328 321 1.695 2009 507 206 582 1.923 4.595 3.515 520 585 20 0 -11 592 145 1.471 3.296 2.104 103 1.878 2007 132 213 222 127 694 918 77 109 1.471 405 520 11 2 -1 399 259 1.017 36 0 0 -230 155 1.Balance Sheet Assets (in € Mn) Cash and Equivalents Net Trade Receivables Other Current Assets Total Current Assets Net Fixed Assets Other Long Term Assets Total Long Term Assets Total Assets Liabilities (in € Mn) Short Term Lease Obligations Accounts Payable Passenger Flight Liabilities Other Current Liabilities Total Current Liabilities Long Term Lease Obligations Retirement Pay Provision Other Long Term Liabilities Total Long Term Liabilities Share Capital* Restatement Effect Restricted Profit Reserves Differences from Currency Translation Cash Flow Hedge Fund Retained Earnings Net Profit For the Year Total Shareholders Equity Total Liabilities & Shareholders Equity 2005 304 121 95 520 1.905 2.386 1.919 4.824 In converting the TRY reported results to EURO.081 2.891 117 2.395 2006 118 172 174 113 577 780 63 106 949 95 1.227 445 2.255 1.488 432 2.192 70 208 1.224 2.667 155 1.

247 -2. the period average EURO exchange rates were used 37 .837 391 30 -111 310 2 753 2009 3.800 57 42 -80 19 -16 212 10/09 % 32% 36% -32% 57% 27% -60% 1083% 134% Financial Expense Monetary Gain/(Loss) Income Before Taxation Taxation Net Income -36 109 -26 83 -62 105 -6 99 -380 209 -59 149 -376 688 -90 598 -80 343 -83 260 -39 97 -50 48 -39 176 -38 138 -1% 81% -23% 190% In converting the TRY reported results to EURO.271 -2.885 387 42 -93 337 6 80 1H'09 1.Income Statement Income Statement (in Euro mn) Operating Revenues Operating Expenses Operating Profit Income From Other Operations Loss From Other Operations Income Before Financial Income/(Expense) Income/Loss due From Asset Valuation Financial Income 2005 1.407 -1.857 -1.228 -2.734 -2.860 -1.449 285 127 -6 407 9 174 2008 3.323 84 27 -63 47 -1 90 1H'10 1.804 56 255 -166 145 2006 2.199 48 153 -34 167 2007 2.

6 5.Subsidiary & Affiliates Capital (Mn. €) 170 78 185 5 Net Income (Mn.4 5.9 14.6 20.8 5 30 -5 Revenue (Mn. €) 154. €) 11 7 -34 -2 Subsidiaries (1H 2010) THY Technic THY Do&Co Sun Express Air Bosnia THY Opet TGS GOODRICH THY TECHNIC SERVICE CENTER 38 Owned 100% 50% 50% 49% 50% 50% 40% .7 9.

BA and Alitalia as well as domestic airlines. › Main goal is to become one of the biggest MRO Center in the region. KLM.(Consolidated) › Owned 100% by THY. including international airlines such as Lufthansa. HABOM (Maintenance Repair & Overhaul Center) Project › HABOM Project will be launched by THY Technic. › Total investment for the project is around 400 mn$ › Expected to generate around 6.Subsidiaries & Affiliates TURKISH TECHNIC A. › THY Technic A. THY will be developing its technical service and maintenance business through the HABOM Project 39 . › Under HABOM. › During the 1H‟10. › Provides maintenance services to more than 100 customers. posted revenues and net income was 170 mn€ and 11 mn€ respectively.S.5 bn$ revenue from 2012 to 2022. the plan is to increase the airframe maintenance capacity to approximately 400 aircraft per annum.S.

venture to establish a new company. repair and overhaul (MRO) services to customers located in Turkey. engine overhaul facility is planned to be comprised of approximately 25.Subsidiaries & Affiliates TURKISH ENGINE CENTER › Turkish Engine Center › In 2008. surrounding regions and worldwide. Turkish Engine Center.49% by Pratt&Whitney and THY Technic. › The new environmentally efficient CFM56® and V2500 40 .000 sq. respectively. › Established to provide engine maintenance. THY Technic and Pratt & Whitney signed a joint › Owned 51% . meters located at the Sabiha Gokcen International Airport.

Subsidiaries & Affiliates GOODRICH THY TECHNIC SERVICE CENTER Goodrich THY Technic Service Center Ltd. › Estimated time for start-up business : 1Q 2011 √ 41 Components will be repaired/serviced by the company .%60 by THY Technic and TSA-Rina › Established to provide the repair and overhaul for Holdings B. Thrust Reverser and Airframe Component overhaul services of high quality and efficiency available in Istanbul. and Airframe Components. Thrust Reverser.V. Turkish Airlines and other customers from Turkish domestic market and International Market of Nacelle.. Which is to establish an overhaul center of excellence and to offer Nacelle. › Owned 40% . subsidiary of Goodrich Corporation.

Antalya.%50 by THY and Do & Co Restaurants & Catering A. Bodrum. Trabzon. Ankara. posted revenues and net income 42 .G. (Equity Pick-up) › Owned 50% . Over 60 national and international airlines are catered from these locations. Izmir.S. was 78 mn€ and 7 mn€ respectively. operating nine gourmet kitchens all over Turkey: Istanbul (Atatürk and Sabiha Gökcen). › During the 1H‟10. › Since 2007.S.Subsidiaries & Affiliates THY DO&CO CATERING A. › THY Do & Co Catering A. Dalaman and Adana.

› Founded in 1994 as Bosnia Herzegovina‟s Registrary. and loss was 5 mn€ and 2 mn€.o. › During the 1H‟10. posted revenues 43 . 30 mn€ and 5 mn€ respectively. respectively. › During the first half of 2010. (Equity Pick-up) › Registered on August 28th.Sarajevo (Equity Pick-up) › Owned 49% by THY. posted revenues and net loss was national airline under the name Air Bosnia. 2008 to Commerce › JP`B&H Airlines`d.o.Subsidiaries & Affiliates › TGS Ground Handling Inc.

611 as of June 2010.50% by THY and Lufthansa. › Fleet consisted of 24 aircraft. number of personnel:1. 20 in Turkey and 45 in other countries. respectively. › Flies to/from 22 airports in Germany. › 2 brand new Boeing 737/800s have been delivered. (Equity Pick-up) › Founded in October 1989 as a subsidiary company of Lufthansa and Turkish Airlines. › As of June 2010. 21 B737& 3 B757 aircraft with total seat capacity of 4. will add 4 brand new Boeing 737-800s to its fleet until the end of 2010. › Market leader in charter flights between Germany and Turkey. by achieving load factor of 72.883.S.Subsidiaries & Affiliates SUN EXPRESS › Sun Express A.948 passengers in 2010. › Owned 50% . 3 B757 aircraft will be returned to the lessor until the end of 2010.88%. › Carried 2. posted revenues and net loss was 185 mn€ and 51 mn€ respectively. 44 .417 › During the 1H‟10.

› Owned 50% . › Start supplying jet fuel to THY for all Domestic Airports other than Sabiha Gokcen Airport as of July 1th 2010. Turkish Airlines established a jet fuel supply company together with local oil retailer OPET on the 18th of September 2009.%50 by THY and OPET. 45 .S.S › In terms of investment on jet fuel supply. › The business activity of the established company is to supply jet fuel to any type of aircraft.Subsidiaries & Affiliates THY OPET HAVACILIK YAKITLARI A. › THY Opet Havacılık Yakıtları A.

The departments within this directorate are. OHSAS 18001 Occupational Health and Safety Management System. Quality Management and Improvement. standards and procedures. we are preparing ourselves to implement ICAO’s Safety Management System and Security Management System. Flight Training. the Quality Assurance and Flight Safety Department. having all requirements fulfilled and systems in place with regards to Turkish Civil Aviation Law. › Quality System: In accordance with JAR OPS 1. Safety. Thus. Nowadays. Flight Operations. Based on the requirement JAR OPS 1. Quality Assurance Directorate which is also reporting directly to Accountable Manager is in charge of the implementation and oversight of the quality system. Cabin. makes informal Line Observations and investigates the occurrences and reports (mandatory/voluntary) to promote flight safety. provide the necessary feedback for Turkish Airlines continuous safer operations. starting with the date of 1999. 14001 Environmental Management System. Turkish Airlines is in close contact with numerous Civil Aviation Authorities and subject to their audits. Turkish Airlines strives to attain safer operational conditions in respect to continuous development processes and appreciates this concept as a “must. Turkish Airlines has the AOC (Air Operator Certificate) approved by Turkish Civil Aviation Administration (CAA). Turkish Airlines established a quality system dedicated “to ensure safe operational practices and airworthy aeroplanes”. is the key concept to consider for operations. safety and quality supports each other and quality systems aim to maintain develop safety as a whole. Accepting and implementing the standards dictated by the aviation authorities and manufacturers as the baseline. It also implements the Flight Data Monitoring System. Turkish Airlines’ quality system is an integrated approach covering standards for aviation and generic systems. • Adoption of Safety Management System approach • Implementation of Flight Data Monitoring (FDM) system • Manage and assess the risk of flight operations • Publications to flourish a widespread culture for operational safety The Flight Safety Department that has direct access to the Accountable Manager is in charge of the management and oversight of the flight safety. In addition to the aviation sector standards. In addition to above all.” › Flight Safety: The following have been implemented and monitored by utilizing the quality system of Turkish Airlines. Turkish Airlines has a quality assurance program which consists of all planned and unplanned audits that ensures all operational activities to be carried out according to all aviation requirements.035. 46 . Our company is an IOSA operator since 2005. Ground Operations. It has also a continuous process that brings forward solutions and suggestions on potential non-conformities in the context of preventive action. as it would commonly be well appreciated and generally accepted. such as ISO 9001 Quality Management System. as well as giving the opportunity to the auditors to evaluate the current situation. Turkish Airlines adopted generic standards for quality. ISO 27001 Data Security Management System and ISO 10002 Customer Satisfaction Management System. Due to its vast operation network. has been inaugurated. Turkish Airlines is determined to keep and develop highest safety standards.Safety & Quality In civil aviation. These audits. Technic. As a result.

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