Pegasus sees post-lockdown demand surge but yields lagging

Turkish budget carrier Pegasus expects its operations to be cash-positive during the second half of 2021, as it reports an “encouraging recovery in demand” in domestic markets in particular. “Forward ticket sales gained pace in June and are foreseen to further support cash reserves in the third quarter,” the Istanbul-based carrier states in its Q2 2021 earnings presentation on 17 August. Yields, however, are still “notably low” compared with pre-Covid levels, Pegasus observes. While Q2 ASKs and passenger numbers were 58% and 49% of 2019 levels respectively, revenues were at just 40%. Historically, international services have tended to account for double the revenue of domestic markets for Pegasus, but travel restrictions are weighing on opportunities to serve overseas markets. Domestic ASKs were at 84% of pre-crisis levels during the second quarter, versus international at just 47%, on load factors of 76% and 64% respectively. In Q3, Pegasus expects to operate 90% of pre-crisis capacity on an ASK basis, followed by 80-85% in the final three months of the year.<br/>