CELEBI GROUND HANDLING ANNUAL REPORT 2018

17 Çelebi Ground Handling 2018 Annual Report When the international passenger transport traffic is analyzed by region; In general, demand (RPK) increased by 6.3% in 2018 compared to 2017, but lagged behind the 8.6% growth in 2017. Total capacity increased by 5.7%; the load factor increased by 0.4% to reach .2%. Demand figures increased on a year-on-year basis in all regions, especially in the Asia-Pacific region. On the other hand, only the North America and Africa region realized higher demand growth compared to the previous year. Traffic of the Asian-Pacific airlines increased by 7.3% in 2018 when compared to 2017 on the back of strong regional economic expansion and a wider range of route options for travelers. Although the 10.5% growth rate in 2017 remained unbeaten, it was still a higher rate of growth than for all regions for a second consecutive year. Capacity increased by 6.4% and the passenger load factor increased by 0.7 percentage points to 80.6%. International passenger traffic on European carriers increased by 6.6% in 2018 compared to the previous year, but lagged behind the 9.4% growth recorded in the previous year. Capacity increased by 5.9% with the load factor up by 0.6 of a percentage point to 85%, the highest for all regions. The seasonally adjusted trend indicates a degree of decline in recent months due to traffic growth, economic grounds and the uncertainty over Brexit. Passenger traffic figures of Middle Eastern carriers increased by 4.2% compared to the previous year, but remained below the 6.9% increase in 2017. Thus, the region achieved a moderate increase for two consecutive years. Capacity increased by 5.2%, with a 0.7 percentage point decline in the load factor to 74.7%. The main reason for this decline was the impact of political tensions in the region, including travel restrictions and a temporary ban on large portable electronic devices. The North American airlines have achieved the fastest demand growth since 2011, with 5% growth over the previous year and exceeding the 4.7% growth recorded in 2017. Capacity increased by 3.7%, with the load factor increasing by 1 percentage point to 82.6%, the second highest score among the regions. While the traffic of Latin American airlines increased by 6.9% in 2018, it decreased in comparison with the annual growth rate of 8.8% in 2017. Capacity increased by 7.7%, the load factor decreased by 0.6% and stood at 81.8%. The traffic was influenced by political and economic developments in some of the other key economies in the region, as well as general strikes which occurred in Brazil in the middle of the year. Finally, demand in Africa increased by as much as 6.5%, outperforming the 2017 growth figure of 6% growth. Capacity increased by 4.4%, with the load factor up by 1.4 percentage points to 71%. When we look at cargo transport by regions: Asia-Pacific region showed a 1.7% growth year-on-year. Additionally, capacity went up 5%. In the North America region, annual cargo growth figure increased by 6.8% in line with the increase in capacity. The fact that the US economy became stronger through the sanctions it imposed on other countries has enabled consumer spending to support these growth figures. Annual cargo demand growth in Europe increased by 3.2% and capacity increased by 4.3%. The weakening of production conditions for exporters affected the demand increase figure, especially in Germany, in 2018. The annual demand growth of the Middle Eastern carriers increased by 3.9%, while capacity increased by 6.2%. The effect of geopolitical events in the region continues to be seen. The capacity of African carriers decreased by 1.3% compared to the previous year, while capacity increased by 1%. In Turkey… According to provisional results domestic line commercial aircraft traffic increased by 5.5% in the January-September 2018 period in Turkey compared to the same period of the previous year, and international commercial aircraft traffic increased by 12.3%. Based on these results, total commercial aircraft traffic increased by 8.6%. The key drivers behind this increase were the recovery in the tourism sector and easing in political tensions. 2018 Activities and Performance A total of 126,777 flights were serviced by the Company in the Turkish market in 2018, corresponding to a 3.99% year-on-year decrease over the 2017 figure of 132,046 flights.