Dear investors and shareholders,
In 2009, financial and commercial performance closely mirrored overall macroeconomic balances. Severe reverberations emanated from the global crises, which turned into the worst economic year on record since World War II, and which the IATA reported as having caused significant financial losses.

Despite the sector’s overall negative picture, Turkish Airlines continued to progress successfully. Building its strategies based on long-term goals and visions - rather than short-term gains our company turned the crisis atmosphere into an opportunity, becoming the fastest growing airline of all member airlines in the European Airlines Association. Turkish Airlines added to this momentum by expanding its share of existing markets through organic growth, and by creating new markets that bring in rising numbers of new potential new passengers.

Today, Turkish Airlines, with its comprehensive flight network and strong schedule structure, has further reinforced its identity as a global airline. The fact that more than one third of our international passengers used Istanbul as their connection point has strengthened our company’s status as a network carrier. In 2009, the Turkish Airlines brand, with its young fleet, quality in-flight catering services, friendly personnel and security and safety standards that surpass international standards, was the preferred airline for 25.1 million passengers, and while the IATA announced a 3.5% contraction in passenger demand, Turkish Airlines grew by an impressive 11%.

In an environment where the sector’s unit revenues have been on a marked downward trend due to deteriorating global economic conditions, our company has reduced costs through a disciplined financial structure and as a result maintained its profitability. In 2009, Turkish Airlines was among Europe’s most profitable airlines, with a total profit of TL 559 million.

Our investments have served as the catalyst for Turkish Airlines’ growth. Ten new international destinations were added to the flight network in 2009. In addition to individual aircraft purchasing and leasing, the ordering process was completed on a total of 89 aircraft - 25 of which are optional - under our fleet renewal and expansion master program encompassing a total of 105 aircraft. Under this program, aircraft will begin entering our fleet in September and generate balanced and effective growth both in single and double-corridor aircraft though 2014.

Through our investments in technical training, we aim to turn Istanbul into a bona fide aviation training center. Our company completed the ordering process for two more training jets and also purchased simulators that will continue providing training services both to our airline’s own pilots and to those of other airlines that we serve. Our pilots that graduate from the flight academy, which provides world-class training, are a source of great pride to us.

Alongside our main investments in the development of our fleet and routes, projects aimed at strengthening our brand image also deserve emphasis. In addition to the "Feel Like a Star" advertising campaign featuring Kevin Costner, in which we highlight that the services we offer our passengers are fit for the stars, we signed sponsorship agreements that once again validate us as an airline preferred by the very best in the world. We were further motivated by the fact that our high quality and service standards were found to be worthy of the "Best airline in South Europe" Skytrax

award, regarded as the Oscars of the aviation sector.
Our company’s achievements have been reflected in the increasing value of our shares, which are traded on the Istanbul Stock Exchange and rose by a colossal 395% in 2009. At the start of 2009, our market value was 945 million TL, and by the end of the year reached 4,988 million TL. Share in Turkish Airlines were the most profitable investment vehicle compared either to other stocks traded on the IMKB or other airline company stocks on exchanges throughout the world.

Turkish Airlines understands that its greatest assets are its determined, dynamic and devoted employees, and thus places great importance on projects that improve the living standards of our personnel. By providing all of our employees with private health insurance and increasing salaries by 6% before the start of the Collective Labor Agreement term, we have further boosted the motivation of our personnel - the architects of our success.

Turkish Airlines has taken off to a roaring start in 2010, and its coming achievements will also command strong attention. I would like to express my gratitude to our investors for their support and to all my colleagues, who have made great contributions to the achievements of our company and put forward their best efforts in making Turkish Airlines one of the most highly respected airlines in the world today.

Hamdi TOPÇU
Chairman of the Board, Turkish Airlines