Pegasus Airlines’ full-year operating profit slips in 2023

Turkish low-cost carrier Pegasus Airlines posted a full-year operating profit of E489m in 2023, down around E100m on the previous year. The reduction in operating profit reflects rising costs outpacing revenue growth. Pegasus’ revenues climbed 9% in 2023 to E2.67b, while its costs rose 15% to just over E2b. Higher revenues in part reflect capacity increased 22% over the year, helping the airline boost passenger numbers 19% to almost 32m. Notably ancillary revenues jumped 30% to E810m 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 E431m to E790m. 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.<br/>