Dear guests, Last month Turkish Airlines hosted IATA's (International Air Transport Association) 64th annual general meeting in Istanbul.

Participants of the conference including airline industry CEOs, executives and representatives of media organizations from around the world converged at one of the most important aviation-related meetings and had the opportunity to learn more about both Turkish Airlines and the city of Istanbul. One of the most important aspects of this year's conference was that it marked the end of printed ticket use by IATA member airlines. As we witnessed this historic transition, Istanbul was the backdrop for this momentous occasion in aviation history.

The unbelievable increase in fuel costs as well as increases in airport and environmental taxes and the adverse impact of these factors on the industry were the main issues of the conference which fosters discussion on the future of the aviation sector. As the global airline industry wrestles with the difficulties of fuel-related cost increases, the winning performance of Turkish Airlines impressed conference attendees. Turkish Airlines, which is Europe's fastest growing airline, had a superb start in 2008. In the first quarter, the company's net profit rose 207% compared to the same period last year, reaching 125 million New Turkish Liras (TRY). Despite the negative impact of fuel cost increases on the sector, the positive first quarter results achieved by Turkish Airlines is an encouraging and pleasing sign for the remainder of the year.

Turkish Airlines management planned and implemented measures to offset cost increases well ahead of their impact. Our main principle in implementing cost-saving measures was to ‘avoid cuts in areas that are necessary for quality of service, and to save even 1 TRY that will not contribute to the service offered to our passengers.’

We've planned to reduce fuel costs by working together with IATA's ‘green team’, which also works to develop environmental sensitivity, and we plan to save up to 100 million USD through related efforts.

Dear guests, I would also like to share with you the positive developments related to Anadolujet, which links Ankara to Anatolia with the assurance of Turkish Airlines. Within a very short period of just two months, Anadolujet succeeded in increasing its passengers by 65%, raised its load factor to 85% and satisfied the expectations of our passengers. Aiming to reach 2 million passengers in 2008, as of June 23 Anadolujet has increased its number of flights and inaugurated flights between Ankara and Denizli. Turkish Airlines continues to increase its domestic destination points. Last month we inaugurated the Amasya Merzifon flights. With flights on 3 days of the week for now, our passengers will be able to reach several provinces and towns in the area.

Dear guests, The success of Turkey's soccer National Team at the European Cup made the country and Turkish Airlines employees proud. As the Turkish Airlines family, we would like to congratulate the players and technical and coaching staff of the Turkish National Team, of which we are a lead sponsor, and we wish them continued success in the future. I wish you all a pleasant flight.

Temel KOTİL, Ph.D., CEO and Member of the Board