Aviation Sector Note

• Despite the Omicron variant that came to the fore at the end of November, we see that there is no deterioration in December traffic data. We expect the gradual improvement in traffic data to continue in the coming period, due to the increase in vaccination globally. Looking at the performance of BBG World Airlines Index, the upward trend in the last 3 weeks, following the withdrawal in November, is remarkable. We think that volatility may be seen in the short term in the aviation sector, but the medium-term outlook is strong.

• As we stated in the note we shared last week (dated 06.01.2022), developments regarding the protest actions in Kazakhstan last week are important for TAVHL in terms of Almaty Airport, which was taken over in May 2021. Considering previous similar events, we think that the impact of these developments on the Company's operational results will be limited, and therefore, any retracement in the stock during this period can be considered as an opportunity for purchase.

• Note that the current multiples are at high levels due to the low level of EBITDA and net profit for the last 12 months due to the pandemic period. We expect to see a better picture after the 4Q21 results.