Thursday, March 6, 2014

Pegasus Airlines profit dips in 2013

Photo: Ali Gurbuz

Turkey’s Pegasus Airlines returned a net profit of TL88.3 million ($40 million) for 2013, down 30.1% on 2012’s figure of TL126.3 million. Revenue increased 25.2% to TL2.4 billion.
Number of passengers carried rose 23.9%, to 16.8 million, compared to 13.6 million in 2012. Load factor rose two points, to 80.2%.
The fast-expanding low-cost carrier, which launched along-awaited IPO last year, increased its share of the Turkish domestic market from 25.7% to 26.9%, while its share of Turkish international passengers rose from 8.1% to 9%.
Pegasus increased its average daily aircraft utilization to 12.6 from 11.7 block hours over the course of 2013. ASKs climbed 22.7% to 20.1 billion, partly as a result of the expanding fleet, which grew from 40 to 49 aircraft, all but three of them Boeing 737-800s.
Commenting on the results, Pegasus GM Sertaç Haybat said 2013 had seen a continuation of the carrier’s sustained growth: “We owe our low fares to our operational productivity and our young fleet.”
An investor’s note issued by Barclays, the UK-based bank, said the drop in net profit was largely attributable to higher foreign exchange losses. It also noted that performance had deteriorated in the fourth quarter of 2013. While fourth-quarter revenues had been strong, there was pressure on yields, largely due to increased competition, particularly from Turkish Airlines.
Looking forward, the note added: “We expect management to be cautious on yield environment while keeping its positive stance in 2014 on growth. The first two months’ data for the Turkish aviation sector suggests no deterioration in terms of passenger growth where we underline the yields as the major headwind in 2014, due largely to Turkish Airlines’ aggressive expansion plan, particularly in the domestic market.” (

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