The objective of Turkish Airlines’ finance strategy is to support the Company’s corporate vision by sustaining a growth trend above the industry average in line with its corporate vision and enhancing its competitive strength. In this context, financial stability, flexibility, and maintaining adequate liquidity are set as key priorities.

The responsibilities of the Turkish Airlines Finance Division include:

• Meeting operational cash needs,
• Ensuring sufficient short- and long-term liquidity,
• Minimizing the cost of capital and other financial expenses such as commissions and foreign exchange conversion fees,
• Taking necessary actions to hedge against financial risks,
• Maximizing returns on the company’s cash portfolio within the outlined constraints.

Performance in these areas is monitored by the Treasury and Risk Management Comission, which operates under the authority of the Board of Directors.

Aligned with its growth strategy Turkish Airlines manages its balance sheet dynamically, while closely monitoring both public and private debt markets. The Company determines its optimal capital structure based on its borrowing capacity, which is in turn driven by profitability and cash flow generation. Turkish Airlines targets a medium-term leverage ratio (Net Debt/EBITDA) between 2x and 2.5x.

Turkish Airlines’ Finance Team manages liquidity risk by maintaining adequate cash reserves and keeping credit lines readily available. The team continuously monitors projected and actual cash flows, while aligning the maturity and currency profiles of assets and liabilities to ensure sufficient liquidity at all times.