Turkey’s Pegasus Airlines sees strong demand but airfares fall

Travel demand to Turkey, an increasingly popular tourist destination, remains strong even as post-pandemic “revenge travel” ends, Pegasus Airlines CEO Güliz Öztürk said. Good right? Yes and no. “The demand is strong but the pricing environment this year is not as strong as last year,” Öztürk said at the Routes World conference in Istanbul on Sunday. In other words, airfares are down even as people remain eager to visit Turkey. Pricing, or airfares, are close to 2019 levels even as overall travel demand remains up into the winter, she added. And, even with the drop, Pegasus’ financial health is “robust;” the airline is among the most profitable in the world with a 22.4% operating margin in the second quarter. The reason for falling airfares to Turkey is simple: More airline capacity. Significantly more. Total airline seats to Turkey were up 17% in the third quarter compared to last year, and up 16% to Istanbul’s two airports, Istanbul International in Europe and Sabiha Gökçen in Asia, according to Cirium Diio schedules. The airports count EasyJet, El Al, Saudi Arabia’s Flyadeal, and Wizz Air among the lengthy — and growing — list of new airlines serving the city. Turkey’s largest airline, flag carrier Turkish Airlines, flew 15% more seats in the third quarter, Cirium Diio data show. And Pegasus, the country’s second largest airline, grew the same amount. Öztürk said the leisure airline plans to grow roughly 20% this year compared to 2022. It fully recovered from its pandemic cuts last year.<br/>