FINANCIAL DATA

> January June 2009

OPERATIONAL DATA
> January July 2009

Destinations

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 persons 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 Companys intentions, beliefs or current expectations concerning, among other things, the Companys 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 Companys 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 forwardlooking 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 Companys 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.

Speakers
Dr. Temel KOTIL, 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 Members of IATA, Turkish Airlines Inc, Turkish Airlines Technical Inc. and Sun Express Inc.

Speakers
COSKUN KILI 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

THY vs AEA
THY vs AEA (Total)
% Changed
30,0 15,6 11,9 19,0 4,1 4,2 5,1 15,5 11,6 13,8 -1,7 3,0 1,2 11,1 21,9 14,8 -8,2 -4,4 -6,4
PAX ASK
RPK

THY vs AEA (Europe)

% Changed
40.0 16.5 7.7 14.6 5.7 6.6 7.0 17.5 11.0 15.8 0.6 3.4 2.0 13.4 17.8 13.3 -8,2 -5.2
AEA

PAX

ASK

RPK

20,0 20.0 10,0 0.0 0

-10,0
TK AEA TK AEA TK AEA

-20.0
TK AEA TK AEA TK

2007

2008

January - July 09

2007

2008

January - July 09

-7.0

THY vs AEA
THY vs AEA (Middle East)
% Changed
30.7 12.9 28.7 10.0 4.4 9.5 54.8 55.2 61.1 11.5 9.4 8.3
PAX ASK
RPK

THY vs AEA (Far East)

% Changed
26.3 14.4 28.5 4.2 0.7 3.1 5.0 4.9 1.9 1.0 3.5 0.4
PAX ASK
RPK

28.8 40.3 27.5

5,7 10,7 3,1

16.3 28.3 12.7

TK

60.0

50.0

40.0

30.0

20.0

10.0

0.0
TK AEA TK AEA TK AEA

-10.0
TK AEA TK AEA AEA

2007

2008

January - July 09

2007

2008

January - July 09

Middle East, Far East and Africa routes are expected to grow higher than average during the years 2009-2010, where THY has been successful in growing faster than AEA....
6

-7.6 -4.7 -7.7

Company Overview
Destinations
36 DOMESTIC LINES
ORLU STANBUL STANBUL

SNOP SAMSUN MERZFON TRABZON KARS ERZURUM SVAS ERZNCAN MU MALATYA K. MARA . ADIYAMAN ADANA ANTALYA URFA ELAZI DYARBAKIR BATMAN VAN

ANAKKALE

BURSA ANKARA ESKEHR

ARI

ZMR

UAK KONYA

NEVEHR KAYSER

DENZL BODRUM DALAMAN

MARDN

. G.ANTEP

HATAY

Company Overview
Destinations
AMERICAS (3)
CHICAGO NEW YORK SAO PAOLO

119 INTERNATIONAL LINES

EUROPE (65)
AMSTERDAM ATHENS BAKU BARCELONA BASEL BELGRAD BERLIN BIRMINGHAM BRUSSELS BUCHAREST BUDAPEST CHISINAOU COLOGNE COPENHAGEN DUBLIN DONETSK DUSSELDORF DNEPREPETROVSK FRANKFURT GENEVA GOTEBORG HAMBURG HANNOVER HELSINKI KAZAN KIEV LEFKOSE LISBON LONDON LJUBLIANA LYON LVOV MANCHESTER MADRID MILAN MINSK MOSCOW MUNICH NICE NURNBERG ODESSA OSLO PARIS PRAG RIGA ROME ROSTOV PRISTINA UFA SARAJEVO SIMFEROPOL SKOPJE SOFIA STOCKHOLM STRASBOURG ST PETERSBURG STUTTGART TBILISI TIRANA VIENNA ZAGREB WARSAW ZURICH VENICE YEKATERINBURG

FAR EAST (18)

ALMATY ASKHABAT ASTANA BANGKOK BEIJING BISKEK DUSANBE HONG KONG JAKARTA KARACHI MUMBAI NEW DELHI OSAKA SHANGAI SEOUL SINGAPORE TASHKENT TOKYO

CANADA (1)
TORONTO

NORTH AFRCA (7)

ALGERS BENGAZI CARIO CASABLANCA KHARTOUM TRIPOLI TUNUS

MIDDLE EAST (19)

AMMAN ABU DHABI ALEPPO BAGDAT BAHREYN BEIRUT DAMASCUS DUBAI DOHA JEDDAT KUWAIT MASHHAD MEDINAH MUSCAT RIYAD SANAA TEHRAN TEBRIZ TEL AVIV

MID - AFRICA (4)

ADISABABA DAKAR LAGOS NAIROBI

SOUTH AFRICA (2)

CAPETOWN JOHENSBURG

Airline Sector in Turkey

Passenger Traffic
THY Passenger Traffic Domestic Landings ASK (million) RPK (million) Passenger # (000) L/F % THY Passenger Traffic Intl Landings ASK (million) RPK (million) Passenger # (000) L/F % THY Passenger Traffic Total Landings ASK (million) RPK (million) Passenger # (000) L/F % 2005 65,448 5,457 4,016 7,197 73.6 2005 61,689 24,348 17,301 6,937 71.1 2005 127,137 29,805 21,317 14,134 71,5 2006 78,910 7,123 5,213 8,906 73.2 2006 73,626 29,811 20,170 8,041 67.7 2006 152,536 36,934 25,383 16,946 68.7 2007 87.162 8,117 5,924 9,984 73.0 2007 81,737 33,502 24,327 9,652 72,6 2007 168,899 41,619 30,251 19,636 72.7 2008 92,593 8,488 6,417 11,063 75.6 2008 96,735 37,855 27,848 11,534 73.6 2008 189,328 46,343 34,265 22,597 73.9 Jan - Jul 2008 52.540 4.828 3.616 6.220 74.9 Jan - Jul 2008 53.564 20.770 15.333 6.308 73.8 Jan - Jul 2008 106.104 25.598 18.949 12.528 74.0 Jan - Jul 2009 54.384 4.990 3.777 6.521 75.7 Jan - Jul 2009 63.687 25.655 17.515 7.217 68.2 Jan - Jul 2009 118.071 30.645 21.292 13.738 69.5 08 vs 09 3.5% 3.4% 4.5% 4.9% 0.8pt 08 vs 09 18.9% 23.5% 14.2% 14.4% -5.6pt 08 vs 09 11.3% 19.7% 12.4% 9.7% -4.5%

THY Passenger Traffic Jan - Jul 2008 vs 2009

Landing ASK (million) RPK (million) Passenger # (000) L/F % up by 11% up by 20% up by 12% up by 10% down by 4.5 points

Significant Growth in Operational Data

Company Overview
Passenger Traffic Capacity - Traffic Development Load Factor %
50 45 40 35 30 25 46 20 42 15 26 24 24 37 25 10 5 0
2002 2003 2004 2005 2006 2007 2008 Jan - Jul 2008 Jan - Jul 2009

Million

ASK

RPK

L/F %

80

68.9 67.0

70.2

71.5

68.7

72.7

73.9

74.0

In 2009, capacity on domestic routes increased by 3.4% , traffic increased by 4.5%, load factor increased by 0.8 pt to 75.7. Anadolu Jets L/F was 81.2%. On international routes; capacity increased by 23.5%, traffic increased by 14.2%, while load factor decreased by 5.6 pt to 68.2%.AnadoluJets L/F was 69.8% Total capacity increased by 19.7% while traffic increased by 12.4%. Load factor was 69.5% (-4.5pt).

70
69.5

60

30

30

34

19

26

31

50
21

16

21

17

19

40

10

Financial Highlights
Revenues Total Revenues ( Mn )
DOMESTIC INTERNATIONAL OTHER

3,500 3,000 2,500 2,000 1,500 1,000 500 332 1,815 362 1,120 1,481 323 864 294 1,581 335 938 308 1,860 251 1,208 401 2,247 308 1,468 2,734 321 1,814

3,228 396

2,167

1,386 192 893

1,386 178 934 274

471

598

665

300

2002

2003

2004

2005

2006

2007

2008

1H08

1H09

Source: Financial statements released under Turkish CMB standards converted to Euro using average exchange rates.

Able to Sustain Revenue Growth While Increasing Capacity

11

Financial Highlights
Revenues Change In R/Y ()
30%
DOMESTIC INTERNATIONAL TOTAL

Change In Rask ()
30%
DOMESTIC INTERNATIONAL TOTAL

20%
20%

19% 11%

20%

22% 8% 7%

23% 9% 9% 8% 14% 5% 4%

12% 2% 6% 5%

12% 7% 6%
10%

10%

10%

5% 5%

0%

0% -9%-9%
2002

0%

-10%

-11%
2005

-11%
2006 2007 2008

-9%

-7% -13%

-10%

-6% -12% -16%

2007 2008

-13% -16%

-20%

2004

1H 2009

-20%

2004

2005

2006

1H 2009

Source: Financial statements released under Turkish CMB standarts, converted to Euro using average exchange rates

12

Financial Highlights
Revenues Revenues Split (1H 09) Passenger Revenues Split by Geography

5.7%
Charter Pax Revenue

Other

22.71%
Intl

Domestic

39.01% 16.16% 12.87%

America M.East Far East

Europe

0.7%

87.2%

77.29%

Cargo

3.69% 5.56%
Africa

6.4%

Source: Financial statements released under Turkish CMB standarts, converted to Euro using average exchange rates

Breakdown of Passenger Revenue Constant Over the Years

13

Company Overview
Passenger Breakdown
Intl Traff ic Breakdown by Geography (Jan-July 2009)
Africa 6.14% Middle East 15.06% America 2.22% Far East 11.34%

Market Shares (Jan- July 2009)

International
Foreign Carriers 32%

59%

THY

Other Turkish Carriers 9%

65.25%

Europe

Domestic
THY
Other Turkish Carriers 33%

67%
Stable Market Share in International Traffic
14

Company Overview
Transit Passengers Intl to Intl Transit Passengers (2000 - 2009)
2,500,000

2,000,000

2,019,453 30% 1.553,425

THY carried total of 2.670.621 transit passengers in JanJul09, with an increase of 26% compared to the same period of 2008. Total transit passengers accounted for 19% of the passenger traffic.

1,500,000
41% 44%

1,000,000
-8% 20% 2% 34%

42% 30% 771,651

1.099,199

500,00

4% 379,626

564,833 574,464 511,233 470,259 393,242

2000

2001 2002

2003

2004

2005

2006

2007

2008 2009E

Jan - Jul 2008

Jan - Jul 2009

Significant increase in Intl to Intl Transit Passengers

15

1.147.149

798.809

Intl to intl transit passengers share in total transit passengers is 43%. During Jan-Jul09, intt to intl passengers increased by %44 reaching to 1,147,149.

Company Overview
Fleet Development Fleet as of July 2009
Type
B737-800 B737-700 B737-400 A320-200 A321-200 A319-100 A330-200 A340 A310 B777-3ER A310 Cargo Total %

Total
51 4 6 22 20 4 7 9 0 3 4 130

Owned
7 3 10 8%

Financial Lease
38 12 14 5 69 52%

Operational Lease
13 4 6 10 6 4 2 2 0 3 1 51 %39

As of July 2009, total seat capacity reached to 23.171, with an average age of 6,1 years. During 2009, annual lease payments expected to be approximately around $522 million in 2009. According to the Fleet Plan for 2009-2023, decision was made to purchase 25 firm of which 7 /A330 and 7/B777-300ER ordered as of June 2009, 10 optional total of 35 Wide Body Long-Haul aircraft with double aisle and 50 firm, 20 optional total of 70 Narrow Body Medium-Haul aircraft.

Fleet Additions
Type
B737-300 ER A330-300 Total

Seat Capacity After Additions & Exits

2010
Seat Capacity 25.750

2010
5 3 8

Seat capacity increased by 25.9% in Jan-Jul 09 compared to the same period of 2008

16

Company Overview
Fleet Development Seat Capacity
23,000

26%

18,000

13,000

12.109

14.419

17.931

17.594

22.238

18.407

23.171

10.672

10.858

8,000

Since 2004, seat capacity has increased by 91% in 2009. Aircraft utilization has been rising due to better fleet composition and a more dynamic scheduling process. However for Jan-Jul09, due to rapid capacity increase, the utilization has decreased.

3,000

2002

2003

2004

2005

2006

2007

2008

Jul 08

Jul 09

Average Daily Flight Utilization (hrs)

11,0 Hours 10,0

-6%

10.07

10.12

10.21

10.31

11.13

11.40

11.47

8,0

2002

2003

2004

2005

2006

2007

2008

17

Jan Jul08

Jan Jul09

11.06

9.47

9,0

Strong capacity growth and better flight utilization

Company Overview
Operating Efficiency Number of Personnel
12,000

6%

THY enjoys high personnel efficiency compared to its competitors.

10,984

10,239

10,956

12,807

12,951

14,072

14,000

14,823

7,000

11,121

Personnel cost of THY per ASK was only 1.2 cents for 1H09 114 employees per aircraft and 927 passengers per employee for the Jan-Jul09.

2,000

2002

2003

2004

2005

2006

2007

2008

Jul 08

Jul 09

Passengers per Employees

1,200

4%
1,018 1,094 1,271 1,323 1,517 1,606 945 895
Jan Jul 08

700

200

2002

2003

2004

2005

2006

2007

2008

Employees per Aircraft

160 120 80

Jan Jul 09

-14%

927

166

158

150

134

124

127

132

40 0

18

2002

2003

2004

2005

2006

2007

2008

Jan Jul 08

Jan Jul 09

114

111

Personnel efficiency is the key driven while increasing fleet size

Financial Highlights
Operating Expenses Operating Expenses ( Euro Mn )
( Mn )
Personnel Fuel Rents Maintenance Insurance Depreciation Landing Ground handling Passenger Catering Sales and Marketing General Administration Others

1H08
295 447 55 60 6 98 93 66 63 96 8 19

% in Total
23% 34% 4% 5% 0% 7% 7% 5% 5% 7% 1% 1%

1H09
316 288 103 81 11 92 120 83 75 117 12 15

% in Total
24% 22% 8% 6% 1% 7% 9% 6% 6% 9% 1% 1%

09/08 %
7% -36% 89% 34% 74% -5% 29% 26% 18% 22% 47% -20%

TOTAL
Op.Cost per ASK ( )

1.306
6,14

1.313
5,18

1%
-16%*

Total Expenses stayed almost the same due to decrease in Fuel Expense
19

Financial Highlights
Operating Expenses Operating Costs per ASK ( Cent 1H 09)
20 10 0
SAS LH OS AA AF DL UA IB AY BA SQ TK 14.1 12.3 10.5 9.3 8.9

8.7

7.9

7.9

7.8

6.6

6.0

5.2

Change in CASK (1H 09)

30% 20% 10% 0% -10% -20%
DOMESTIC INTERNATIONAL TOTAL

16% 1% 0% -5%
2004 2005

14% 1% -8% -7% -9%

2006

11% 10% -4% 6% -13% -16% -14% *

11%

-6%
2007

2008

1H 09

* The difference is due to monthly exchange and period-end exchange rate

20

Historical Highlights
Operating Expenses % in Total Operating Expenses (2002 1H09)
40% 35% 30% 25%
Personel Expense Fuel Expense

34% 27% 23% 23% 24% 24% 16% 15% 20% 20% 24% 21% 28%

34%

20%
20% 15% 10% 2002

23%

24%

22%

2003

2004

2005

2006

2007

2008

1H 08

1H 09

Portion of Fuel Expenses Decreased Significantly

21

Historical Highlights
Operating Expenses Cost Per ASK (2002-1H 09)
CASK Personel / ASK Fuel / ASK

10.00

8.00

6.53

5.67 5.36

6.05

5.95 5.71

6.25

6.14

6.00

5.18 1.34 1.39 1.25 1.14

1H 09

4.00

2.00

1.31 0.95
2002

1.22

1.32

1.45 1.47
2005

1.22 1.66
2006

1.37 1.59
2007

0.85
2003

1.11
2004

2.11
2008

2.10
1H 08

22

Financical Highlights
Ebitdar EBITDAR Margin % Comparison (1H 2009)
35.0 29.0 23.0 17.0 11.0 5.0 -1.0
RY TK SQ

29.9 19.3 8.7 5.2

OS

2.5
LH

2.1
AF

1.5
SAS

Cost cutting policies had a positive impact on operating expenses. 2008 3.228 334 10,34 541 16,77 723 22,41 598 1H '08 1.386 79 5,7 177 12,77 232 16,74 131 1H '09 1.386 73 5,27 165 11,9 268 19,34 48 09/'08 % 0% -8% -0,43 pt -7% -0,87 pt 16% 2,6 pt -64%

( Euro Mn) Revenue EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%)

2004 1.581 81 5,1 251 15,9 315 19,9 61

2005 1.86 56 3,0 235 12,6 320 17,2 56

2006 2.247 48 2,1 235 10,5 366 16,3 101

2007 2.734 285 10,42 490 17,92 678 24,81 149

Net Income

23

THY
Fuel Average Specific Fuel Consumption
4.20 4.00 3.80 3.60 3.40 3.20 3.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 Jan Jul 09
11,63% reduction since 2000
4.04 3.82 3.89 3.76 3.77 3.84 3.67

THY Fleet 2008 3.6 Litres/100 ASK

3.60 3.57

3.47

Per ASK Fuel Cost ( Cent) 1H 2009

4 2.3 2 2.3

Although THY does not hedge, its fuel expense per ASK is lower on the average compared to its peer group. Due to fleet expansion, the fleet average age will be lower which in return will increase THYs fuel efficiency.

1.9

1.9

1.8

1.8

1.7

1.7

1.5

1.2

DL

SAS

SQ

BA

AF

AY

OS

LH

UA

TK

Fleet expansion will reduce fuel cost as well as fleet age

24

Source: Company annual reports & websites.

THY
Fuel Fuel Consumption/Fuel Expense
000 Tons

During 1H09, fuel consumption increased by 14%, despite a 17% increase in kilometers flown. In 1H09, fuel expenses decreased by 36%. As a result of this, fuel share in total operating costs of THY dropped from 34% in 1H08 to 22% in 1H09. Turkish Airlines Fuel Saving Program started in April 2008 with the collaboration of IATA Green Team.

14%
Mn. Euro

618

703

-36%
447 288

Fuel Consumption 1H08

Fuel Expense 1H09

May 2008-July 2009

As a result of the implementation of fuel saving initiatives; we have realized the below figures:
Fuel Savings (ton) Monetary Savings CO2 Emission Reduction (ton)

THY FUEL SAVING PROGRAM

165.364 $142.910.850 519.243

Young fleet helps to keep fuel consumption down and improves fuel efficiency

25

THY
Currency breakdown Income by Currency (1H 2009)
Other 33% USD 12%

TRY 17%

Euro 38%
THYs income is diversified among the major currencies. Due to its currency basket THY is very flexible on fx position. Although USD income is lower than USD expenses THY is able to cover its USD expenses from Euro income due to strong Euro against USD.

Expenses by Currency (1H 2009)

TRY 33%

Other 7%

Euro 13%

USD 47%

26

Diversified revenue & expense base and agility in pricing currency

Company Overview
Highlights Blessed by its prime location
Turkey only 3hrs flight from 50 different countries Increased focus on transit flights since 2002 Increased focus on Business Class passengers since 2006 Market leader in Turkey with a strong brand recognition Member of Star Alliance

Substantial cost advantage over rivals

Labor costsonly 1.2per ASK (Austrian: 2.16, Lufthansa :3.03, SAS: 5.5, Iberia: 2.1) Profitable with room for further cost reductions

27

THY
top Performing Companies
RANK COMPANY
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 Singapore Airlines Ltd Deutsche Lufthansa AG Malaysian Airlines System Berhad Trk Hava Yollar A.O. Qantas Airways Ltd Lan Airlines SA Air New Zeland Ltd Aer Lingus Group PLc Iberia Lineas Aereas De Espana SA Finnair OYJ Hawaiian Holdings Inc. Air France-KLM All Nippon Airways Co Ltd Ana Alaska Air Group Inc Japan Airlines Corp Continantal Airlines Inc British Airways PLC Cathay Pasific Airways Ltd TAM SA Austrian Airlines Sas Ab.Stockholm Delta Air Lines Thai Airways International AMR Corp. Air Canada Asiana Airline Inc. Korean Air Lines Co.Ltd Air China Ltd China Southern Airlines Co Ltd US Airways Group Inc. UAL Corp China Eastern Airlies Corp. Ltd.

SCORE DATE
Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Mar 09 Mar 09 Dec 08 Mar 09 Dec 08 Mar 09 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08 Dec 08

08 REVENUE $ mn
11.825 35.807 4.352 3.982 14.562 4.534 3.203 1.893 7.281 3.157 1.211 31.823 14.102 3.620 19.758 15.241 12.196 11.185 4.107 3.292 6.743 22.697 5.775 23.766 9.000 3.609 8.357 7.760 8.104 12.118 20.194 6.130

TOTAL SCORE
75 65 63 62 59 55 51 51 49 43 42 35 35 35 29 28 28 24 22 20 19 18 16 15 14 7 6 5 2 1 1 1

LIQUIDITY
81 86 73 62 85 36 70 64 83 71 37 63 50 64 59 45 61 67 33 53 45 44 31 46 30 10 24 29 25 22 28 30

FINANCIAL EARNINGS HEALT PERF.

87 56 65 84 36 66 52 52 38 33 44 26 37 31 29 35 21 22 39 15 37 20 15 15 22 15 13 2 1 15 6 1 28 22 35 33 47 65 21 1 2 2 64 1 33 6 10 21 1 1 1 18 1 20 28 7 7 26 1 7 8 1 1 12

FUEL MGT.
46 51 29 31 30 28 18 11 21 17 15 32 36 11 30 28 15 9 8 7 12 11 9 16 12 9 4 4 5 12 1 1

ASSET MGT.
33 31 50 46 36 99 41 22 19 30 69 25 37 31 23 44 13 4 48 12 15 1 20 17 21 28 10 25 17 31 1 1

THY ranked No.2 in the financial fitness* category

* Representing a measure of an airlines overall financial strength based on assessments of solvency, current ratio, fixed-charge coverage, mix of debt and equity capital, operating income margin and debt service cover.

Source:Aviation Week

28

Destinations

THANK YOU
Turkish Airlines Inc. Investor Relations Department
Mr.Cokun KILI / CFO Ms.Suna ELEB / IR Manager Tel: +90 212-463-6363/3630 E-mail: ir@thy.com

THY
Cargo transportation

Turkish Cargo
Leading cargo carrier in total export and import cargo in Turkey. Operates 21 destinations with its 4 A310-300 freighters besides 155 destinations with 130 passenger aircraft. During the 1H09 posted revenue was 88.5 million Euro, carried cargo was 101,784 tons. While Association of Eurepean Airlines member companies decreased by an average of 13%, Turkish Cargo grew by 15% during the 1H09.

30

THY
Cargo transportation Cargo Revenue ( Mn)
Mn
250

200

150

100

136

144

160

175

179

201

Cargo revenue has increased by 12% in 2008 compared to 2007. However, for the first half 2009, it has decreased by 6% compared to the same period of 2008.

6%

50

0 2003
Source: Company

95
2004 2005 2006 2007 2008 1H 2008

89
1H 2009

31

Plans to Enlarge Freighter Fleet Aiming Higher Cargo Revenues

THY
Cargo transportation THY-Cargo
250,000

Tons

INTERNATIONAL

DOMESTIC

200,000

125,033

150,000

144,033

161,249

100,902
20,703

100,000

93,828

103,729

96,467

113,163

8%

90,496

Domestic and International breakdown is consistent over the years. As of January - July 2009 THY has carried total of 121.605 Tons cargo, indicating 8% increase compared to same period of 2008.

50,000
28,438 28,994 31,122 31,811 34,840 39,019 37,757

22,024

2002
Source: Company

2003

2004

2005

2006

2007

2008

JanJul08

JanJul09

32

THY
Cargo transportation Turkish Cargo Market vs THY
450,000 Tons
TURKISH MARKET THY THY MARKET SHARE

80%

300,000 44% 42% 44%

56% 46% 48% 49% 48%

60%

40%

150,000 20% 382,572 324,588 134,851 144,974 348,722 159,873 183,052 402,097 199,006 199,649 182,244 276,283 122,822 101,784 331,116 94,891

0
2003 2004 2005 2006 2007 2008 1H 08 1H 09

0%

THY increased its market share in Turkish cargo market from 48% to 56% during 1H2009.

Source: Company

33

THY
Network Mapping
5.500
WEEKLY FREQUENCY

4.500

3.500

2.500

1.500

05 04 83 03 02 73 66 65
90 100 110 120

09 08 132 07 127 06 101 103

FORECASTED

DESTINATIONS
130 140 150 160 170

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THY
assets & Liabilities
Assets (in Mn)
Cash and Equivalents Net Trade Receivables Other Current Assets Total Current Assets Due from Related Parties (Long Term) Net Fixed Assets Other Long Term Assets Total Long Term Assets Total Assets

2003
378 68 57 502 30 1130 26 1,186 1,689

2004
200 87 84 371 0 995 248 1,243 1,614

2005
304 121 95 520 0 1657 224 1,882 2,402

2006
197 135 241 573 8 1671 143 1,822 2,395

2007
281 179 410 870 13 1891 104 2,008 2,878

2008
236 163 806 1205 11 2359 101 2,471 3,677

1H 08
633 238 206 1.077 9 1.967 103 2.078 3.155

1H 09
510 240 607 1.357 146 2.312 84 2.541 3.899

09/08
-19% 1% 194% 26% 1561% 18% -18% 22% 24%

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 Capital Share Premium Reserves Foreign Currency Translation Differences Accumulated Loss /Income Total Shareholders Equity Total Liabilities & Shareholders Equity

2003
140 104 64 112 420 688 45 31 764 963 0 71 -530 505 1,689

2004
111 108 101 78 399 524 55 29 608 1048 0 77 -518 608 1,614

2005
229 161 0 365 755 540 72 249 861 110 1180 5 -509 786 2,402

2006
118 172 151 136 577 780 63 106 949 95 1010 4 -240 869 2,395

2007
134 213 222 125 694 933 77 94 1104 102 1018 36 -75 1081 2,878

2008
196 203 206 149 754 1307 67 154 1528 82 781 0 2 530 1395 3,677

1H 08
141 227 0 443 811 1.027 0 196 1.224 91 897

1H 09
198 236 368 194 996 1.265 68 179 1.511 408 925 10 2 47 1.392 3.899

09/08
40% 4% -56% 23% 23% -9% 24% 349% 3% -64% 24% 24%

132 1.121 3.155

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THY
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/(Loss) Monetary Gain/(Loss) Income Before Taxation Taxation Net Income 154 -223 170 -43 127 21 -64 62 -2 61 -36 109 -26 83 -54 105 -4 101

2003
1.481 -1.289 193 53 -6 240

2004
1.581 -1.501 81 34 -9 105

2005
1.860 -1.804 56 255 -166 145

2006
2.246 -2.196 50 486 -376 159

2007
2.734 -2.449 285 127 -6 407 9 174 -380 209 -59 149

2008
3228 -2,894 334 30 -54 310 2 753 -376 688 -90 598

1H'08
1.386 -1.306 79 91 -2 168 -6 115 -113 165 -34 131

1H'09
1.386 -1.313 73 27 -52 47 -1 90 -39 97 -50 48

09/08 %
0% 1% -9% -71% 2479% -72% -77% -21% -65% -41% 45% -64%

In converting the TRY reported results to EURO, the period average EURO exchange rates were used

36

THY
Subsidiary & affiliates Subsidiaries
THY Technic A.S. (Consolidated) THY Do & Co Catering A.S. (Equity Pick-up) TGS Ground Handling Inc. (Equity Pick-up) JP`B&H Airlines`d.o.o.Sarajevo (Equity Pick-up) Sun Express A.S. (Equity Pick-up) THY Academy (to be Established) THY Flight Training Inc.

37

THY
Subsidiary & affiliates Turkish Technic
> THY Technic A.S. (Consolidated)
Owned 100% by THY During the 1H09 posted revenues and net income was 162mn and 19mn respectively. Provides maintenance services to more than 10 international airlines including Lufthansa, KLM,BA and Alitalia as well as domestic airlines Main goal is to become one of the biggest MRO Center in the region. HABOM (Maintenance Repair & Overhaul Center) Project will be launched by THY Technic Under HABOM, the plan is to increase the airframe maintenance capacity to approximately 400 aircraft per annum. Expect over 500 mn$ revenue by 2016 from HABOM Project.

THY will be developing its technical service and maintenance business through the HABOM Project
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THY
Subsidiary & affiliates
> THY Do & Co Catering A.S. (Equity Pick-up)
Owned 50% - %50 by THY and Do & Co Restaurants & Catering A.G. Since 2007, operating nine gourmet kitchens all over Turkey: Istanbul (Atatrk and Sabiha Gkcen), Ankara, Antalya, Izmir, Bodrum, Trabzon, Dalaman and Adana. Over 60 national and international airlines are catered from these locations. During the 1H09 posted revenues and net income was 52.3mn and 2mn respectively.

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THY
Subsidiary & affiliates TGS Ground Handling Inc. (Equity Pick-up)
Registered on August 28th, 2008 to Commerce Registrary.

QuickTime and a decompressor are needed to see this picture.

JP`B&H Airlines`d.o.o.Sarajevo (Equity Pick-up)

Owned 49% by THY Founded in 1994 as Bosnia Herzegovinas national airline under the name Air Bosna During the 1H09 posted revenues and loss was 3.7 mn and 2 mn , respectively

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THY
Subsidiary & affiliates SUN EXPRESS
Sun Express A.S. (Equity Pick-up)
Founded in October 1989 as a subsidiary company of Lufthansa and Turkish Airlines. Owned 50% - 50% by THY and Lufthansa, respectively. Market leader in charter flights between Germany and Turkey. Fleet consisted of 19 aircraft; 16 B737& 3 B757 aircraft with total seat capacity of 3,696 as of June 2009. Carried 2,382,804 passengers in 1H 09, by achieving load factor of 76.8%. As of June 2009, number of personnel:1,213 During the 1H09 posted revenues and net loss was 179mn and 1,4 mn respectively.

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THY
training THY ACADEMY
THY ACADEMY( To be Established)
One of the most outstanding training centers in the aviation industry. Has been applying ISO 9001 Quality Management System since 1998. Gives training services about 10.000 people each year with its trainers, specialized in their areas. Addresses the training needs of cargo and passenger agents, universities and other airlines besides Turkish Airlines. Gives training at the areas which are given below: Technic: including Airbus, Boeing and RJ70/100 trainings Reservation Ticketing Cargo Operations Passenger Services Ground Handling Computer Personal Development and Quality

42

THY
Flight training THY Flight Training Inc. (to be Established)
THY Flight Training Inc. (to be Established)
Turkeys sole flight training center, certified by Type Rating Training Organization (TRTO) offers training in line with the standards of JAR-FCL. THY not only address airlines within copartnerships, but also other airlines. Turkish Airlines Flight Training Center offers: -Cockpit Crew Training -Cabin Crew Training -Simulators: 4 full flight simulators for RJ-100, B737-400, B737-800 and A320s aircraft A340 Business class, B737 Economy Class Cabin Service Trainer(CST) B737/A310/A340 Cabin Emergency Evacuation Trainer(CEET) - Ground Training - Turkish Flight Academy

Turkish Flight Academy

Founded on November 2004 as a result of a need for new flight personnel for THY. Started training with 16 pilot candidates on May 2006. Giving 210 hours flight training and 1200 hours ground training. Currently 52 students are being trained and are expected to graduate in Fall 2009.

2 new simulators ( A320-A330/340) will be in service as of 2010.

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THY
Safety & Quality Safety:
As it is very well known and appreciated Safety is the key concept to be adopted for existence. THY is determined to operate with the highest operational standards. Accepting and implementing the standards dictated by the aviation authorities and manufacturers as the baseline, THY strives to attain safer operation conditions in respect to continuous development process and appreciates it as a must. Within the frame of this efforts, adoption of Safety Management System approach, implementation of Flight Data Monitoring (FDM) system, trainings provided in risk assessed flight subjects and publications to flourish a widespread safety culture can be mentioned. The Flight Safety Department that has direct access to the Accountable Manager is in charge of the management and oversight of the systems safety. In addition to its audits, it also implements the Flight Data Monitoring System, makes informal Line Observations and investigates the occurences and reports (mandatory/voluntary) to promote safety. In this context, it must be emphasized that THY is qualified as an IOSA Operator after the IATA Operational Safety Audit as of April 07, 2006. The expiry date of renewed IOSA operatorship is October 2009. In addition to the IOSA audit, due to its vast operation network, THY is in active contact with numerous Civil Aviation Authorities and subject to their audits. These audits, as well as providing the opportunity to the auditors to evaluate the current situation, input the required feedback for THYs safer operation from thereupon.

Quality:
Turkish Airlines adopted TS-EN ISO 9001:2000 Quality Management System (QMS) in 2006. Quality Assurance Directorate which is also connected directly to Accountable Manager is in charge of the implementation and oversight of the quality system. The departments within this directorate are; Flight Operations, Ground Operations, Technic, Cabin, Flight Training, Quality Management and Improvement. Each department implements scheduled and unscheduled operational audits annually to acquire the condition information. The QMS is in a development stage progressing into Integrated Management System. TS-EN ISO 14001:2004 Environmental Management System and OHSAS 18001- Occupational Health and Safety System are planned to be integrated by mid of 2009. In addition to above, having all requirements fulfilled and systems in place with regards to Turkish Civil Aviation Law, Turkish Airlines has the AOC (Air Operator Certificate) approved by Turkish Civil Aviation Administration (CAA).

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