1Q20 RESULTS SUMMARY Key Financial Data 2018 2019 Change 1Q'19 - PowerPoint PPT Presentation

1Q’20 RESULTS SUMMARY

Key Financial Data 2018 2019 Change 1Q'19 1Q'20 Change (USD mn) 12.855 13.229 2,9% Revenue 2.768 2.533 -8,5% 10.918 11.167 2,3% Passenger Revenue 2.275 1.992 -12,4% 1.647 1.688 2,5% Cargo Revenue 406 466 14,8% 1.169 585 -50,0% Net Operating Profit / Loss -203 -300 - 1.191 876 -26,4% Profit From Main Operations -150 -324 - 753 788 4,6% Net Income -229 -327 - 5,9% 6,0% 0,1 pt Net Income Margin -8,3% -12,9% -4,6 pt 3.349 3.107 -7,2% EBITDAR 358 252 -29,8% 26,0% 23,5% -2,6 pt EBITDAR Margin 12,9% 9,9% -3,0 pt 2

Revenue Development (1Q’19 vs 1Q’20) (mn USD) Cargo and Other Revenue Pax RASK Currency Load Factor (Ex-Currency) (Ex-Currency, Ex-L/F) -59 +57 Volume +116 -120 -229 1.992 2.275 Passenger (-12%) Cargo (15%) 466 406 Other (-14%) 87 75 ∑ ∑ 2.768 2.533 Total Revenue (-8%) 1Q'20 1Q'19 3

Unit Revenue Development %-0,2 %-0,1 RASK (U RAS (USc) Sc) %-2,5 6,30 6,29 6,07 5,55 5,54 5,41 1Q'19 1Q'20 1Q'19 ex-currency 2018 2019 2019 ex-currency Pas asse senger RAS RASK (U (USc) Sc) %3,2 %-0,2 %-2,7 6,19 6,00 5,95 5,33 5,33 5,19 1Q'19 1Q'20 1Q'19 ex-currency 2018 2019 2019 ex-currency %3,6 Rev Revenue Yie Yield (R/ (R/Y) ) (U (Usc) sc) %5,8 %3,1 7,59 7,32 7,29 7,05 6,87 6,66 1Q'19 1Q'20 1Q'19 ex-currency 2018 2019 2019 ex-currency Revenue Yield (R/Y) Total Passenger Revenue / RPK 4 Passenger RASK: Total Passenger Revenue / ASK RASK: Total Passenger and Cargo Revenue / ASK* *ASK value is adjusted for cargo operations adding Cargo Available Ton Km.

Regional Yield Development in USD (1 Q’1 9 vs 1 Q’ 20) Am America Eur Europe Asia / Far Asia Far Eas East Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 7,8% 10,0% 6,9% 7,6% 3,4% -0,9% 0,3% -2,6% -4,7% -0,8% -0,4% -8,6% -10,6% -1,8% -12,4% Afr Africa Mid iddle East East Dom Domestic Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 20,4% 0,9% 0,3% 8,5% 3,1% 2,7% 3,0% -0,6% 1,2% -5,6% -0,6% -3,6% -4,7% -22,7% -17,1% Revenue Yield (R/Y) Total Passenger Revenue / RPK 5 Passenger RASK: Total Passenger Revenue / ASK RASK: Total Passenger and Cargo Revenue / ASK* *ASK value is adjusted for cargo operations adding Cargo Available Ton Km.

Profit From Main Operations Bridge (1 Q’1 9 vs 1 Q’ 20) (mn USD) Ex-Fuel Unit Cost Fuel RASK (Ex-Currency, Currency (Ex-Currency, Ex-Utilization, Ex-L/F) Ex-L/F) Other* Utilization Revenue Effect : -59 mn USD Cost Effect : +120 mn USD Load Factor 1Q'19 1Q'20 Profit from Main Operations 6 *Includes other operating income, other operating expense and FX gains/losses from operational activities.

Operational Expense Breakdown 2018 2019 Change 1Q'19 1Q'20 Change (mn USD) 3.768 3.873 2,8% Fuel 855 789 -7,7% 1.772 2.067 16,6% Personnel 517 490 -5,2% 1.682 1.832 8,9% Aircraft Ownership 434 479 10,4% 1.056 1.175 11,3% Airports & Air Navigation 245 252 2,9% 986 1.101 11,7% Sales & Marketing 310 214 -31,0% 733 815 11,2% Ground Handling 189 184 -2,6% 560 623 11,3% Passenger Services & Catering 141 121 -14,2% 804 791 -1,6% Maintenance 192 217 13,0% Other 1 325 367 12,9% 88 87 -1,1% 11.686 12.644 8,2% TOTAL 2.971 2.833 -4,6% ASK Growth: 3,1% ASK Growth: -10,0% 1 Includes General Administration and Other Cost of Sales. 7

Fuel Expense Breakdown Hedging Price (mn USD) -29 Volume +45 855 -82 789 Fuel Expense (-7,7%) 1Q’19 1Q’20 8

CASK Breakdown 2018 2019 Change 1Q'19 1Q'20 Change (USc) 2,07 2,06 -0,3% Fuel 2,00 2,06 2,6% 0,97 1,10 13,1% Personnel 1,21 1,28 5,3% 0,92 0,98 5,6% Aircraft Ownership 1,02 1,25 22,7% 0,58 0,63 7,9% Airports & Air Navigation 0,57 0,66 14,3% 0,54 0,59 8,3% Sales & Marketing 0,73 0,56 -23,3% Ground Handling 0,40 0,43 7,8% 0,44 0,48 8,2% 0,31 0,33 7,9% Passenger Services & Catering 0,33 0,32 -4,6% 0,44 0,42 -4,6% Maintenance 0,45 0,57 25,6% 0,18 0,20 9,5% Other 0,21 0,23 9,9% 6,42 6,74 4,9% TOTAL 6,97 7,38 6,0% Ex-Fuel CASK: 7,4% Ex-Fuel CASK: 7,3% Ex-Fuel CASK (incl. ATK)*: 2,9% Ex-Fuel CASK (incl. ATK)*: 4,4% *ASK value is adjusted for cargo operations adding Available Cargo Ton Km. Note: ASK value is adjusted to indicate effect of cargo because cargo expenses has reasonable share in our total expenses. 9

Selected KPI’s 2018 2019 Change 1Q'19 1Q'20 Change 714 701 -1,9% Fuel Price (Usd/ton) 676 689 2,0% 3,30 3,26 -1,3% Fuel Consumption (lt) per 100 ASK2 3,28 3,16 -3,6% 1.174 1.228 4,6% Aircraft Ownership Cost per BH 1.261 1.568 24,3% 561 530 -5,5% Maintenance Cost per BH 558 710 27,3% 1.484 1.674 12,8% Handling Cost per Landing 1.675 1.937 15,7% 1.192 1.269 6,5% Airports & Air Navigation Cost per km Flown 1.160 1.302 12,2% 7,46 8,39 12,5% Passenger Services & Catering Cost per Pax 8,42 9,03 7,2% Sales & Marketing Cost / Total Revenue 7,7% 8,3% 0,7 pt 11,2% 8,4% -2,8 pt 10

EBITDAR Calculation 2018 2019 Change EBITDAR (mn USD) 1Q'19 1Q'20 Change 12.855 13.229 2,9% Sales Revenue 2.768 2.533 -8,5% 10.136 10.928 7,8% Cost of Sales (-) 2.504 2.474 -1,2% 2.719 2.301 -15,4% GROSS PROFIT / (LOSS) 264 59 -77,7% 260 299 15,0% General Administrative Expenses (-) 72 71 -1,4% 1.290 1.417 9,8% Marketing and Sales Expenses (-) 395 288 -27,1% 1.169 585 -50,0% NET OPERATING PROFIT / (LOSS) -203 -300 - 165 355 115,2% Other Operating Income 61 41 -32,8% 143 64 -55,2% Other Operating Expense (-) 8 65 712,5% 1.191 876 -26,4% Profit / (Loss) from Main Operations -150 -324 - 185 192 3,8% Adjustments -2 19 - Share of Investments' Profit / Loss Accounted 123 82 -33,3% -15 -17 - by Using The Equity Method 62 110 77,4% Income From Government Incentives 13 36 176,9% 1.376 1.068 -22,4% EBIT -152 -305 - 1.087 1.521 39,9% Depreciation 360 411 14,2% 2.463 2.589 5,1% EBITDA 208 106 -49,0% Adjusted Operating Lease Expenses 1 743 361 -51,4% 115 111 -3,5% Adjusted Short term Lease Expenses (Wet- 142 156 9,7% 35 35 -1,6% lease) 2 3.349 3.107 -7,2% EBITDAR 358 252 -29,8% 26,0% 23,5% -2,57 EBITDAR MARGIN 12,9% 9,9% -3,01 Notes: - For 1Q’20 Turkish Technic’s contribution to EBITDAR through consolidation is 55 mn USD, compared to 70 mn in 1Q’19 - For 1Q’20 adjustments for heavy maintenance of operational lease expenses is 106 mn USD compared to 105 mn USD in 1Q’19. 1 Adjusted for A/C heavy maintenance 11 2 Adjusted for A/C rent and heavy maintenance portion (Aprox. 55%)

1Q’20 RESULTS

Aviation Sector & Economy Turkish Market Growth (mn passengers) Domestic (*) International ’13 - ’22F CAGR 125,3 2,6% 6,1% 119,3 108,4 97,6 84,0 83,5 71,2 56,5 54,8 32,9 51,2 50,0 48,5 48,1 47,6 31,0 2015 2016 2017 2018 2019 2020F 2021F 2022F Source: General Directorate of State Airports Authority (DHMI) – April 2020 (*)Adjusted for double count on Domestic Pax Annual RPK Growth (%) 11,6% 8,9% 8,0% 7,4% 7,3% 6,5% 7,9% 4,2% 6,3% 2,7% 2015 2016 2017 2018 2019 World RPK Growth THY RPK Growth Source: IATA 13

Turkish Airlines Historical Growth 2017 - 329 Aircraft 69m pax 12.000 Weekly Flights 2019 - 350 Aircraft 2016 – 334 Aircraft 75m pax 74m pax 63m pax 4x growth in fleet, 11.000 5x growth in pax, 2018 55m pax 61m pax 3x growth in # destinations since 2005 10.000 – 332 9.000 2014-261 2015 – 299 48m pax 8.000 2013-233 39m pax 7.000 33m pax 6.000 2012-202 29m pax 25m pax 2011-180 5.000 23m pax 2010-153 20m pax 2009-132 4.000 17m pax 2008-127 14m pax 3.000 2007-101 2006-103 2005-83 2.000 Destinations 1.000 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 Note: Diameters of the bubbles are proportional to the number of passengers carried. 14