Turkish low-cost carrier Pegasus Airlines posted a full-year operating profit of €489 million ($530 million) in 2023, down around €100 million on the previous year.

The reduction in operating profit reflects rising costs outpacing revenue growth. Pegasus’ revenues climbed 9% in 2023 to €2.67 billion, while its costs rose 15% to just over €2 billion.


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Pegasus expects to take delivery of 16 Airbus A321neos across this year

Higher revenues in part reflect capacity increased 22% over the year, helping the airline boost passenger numbers 19% to almost 32 million. Notably ancillary revenues jumped 30% to €810 million and account for almost a third of the airline’s turnover.

While full-year operating and pre-tax profits were both down for the year, a deferred tax gain – reflecting inflationary impacts – helped drive a sharp rise in net profits from €431 million to €790 million.

Pegasus expects to lift capacity in term of available seat kilometres by between 10-12% this year. While it projects “a flattish trend” for yields, it sees ancillary revenues per passenger rising again, by around ‘mid-to-high single digit’ levels compared to 2023.

However, the airline warns that the cost outlook remains challenging, particularly due to wage inflation. 

Pegasus’ fleet reached 110 aircraft as of the end of last year – almost 90 of which are Airbus A320/A321neos. It expects to take another 16 A321neos this year, as part of plans to increase its overall fleet to 118 by the end of 2024. That will further lift the share of new generation aircraft in its fleet, as it plans to withdraw seven A320ceos and a Boeing 737-800 during 2024.