Strong yields and revenue help Pegasus narrow Q1 loss

Turkish carrier Pegasus Airlines narrowed its net loss in Q1 to E22m on record revenues for the period. The Q1 performance – usually a loss-making period for the airline – marked an improvement on the E60m Pegasus lost in the same three months last year and the E42m loss reported in pre-pandemic 2019. Pegasus revenues of E442m jumped 64% compared with last year and by 52% against Q1 2019. Notably, ancillary revenues climbed even faster, rising 68% to E156m. The revenue growth reflects the continued strong yield environment, up by more than a quarter year on year. While capacity is 16% above pre-pandemic levels, the 6.3m passengers Pegasus flew in Q1 2023 remains below the 6.9m it carried in the same period of 2019. Pegasus Airlines says: “The booking curve build-up is picking up pace, confirming our expectation for a robust international demand in the upcoming peak summer period.” The airline is maintaining its aim to lift capacity in terms of ASKs by a fifth this year compared with 2022. The airline ended the quarter with 99 aircraft in its fleet, the majority of which are Airbus A320/A321neos. Pegasus aims to take 13 more A321neos this year, phasing out nine aircraft – a mix of current generation Airbus and Boeing narrowbodies – to have a fleet of 103 aircraft. Notably all the carrier’s remaining aircraft deliveries are for the larger A321neo, meaning its average seat count will reach 215 by 2025, compared with 191 in 2021.<br/>