Pegasus Airlines plans fleet expansion despite financial turbulence

Airbus A320neo (Photo: Steffen Lorenz).
Airbus A320neo (Photo: Steffen Lorenz).

Pegasus Airlines plans fleet expansion despite financial turbulence

Airbus A320neo (Photo: Steffen Lorenz).
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Amid financial challenges, Pegasus Airlines, one of Turkey's leading low-cost carriers, plans to significantly expand its fleet. These ambitious plans reflect its desire to remain competitive and expand despite economic difficulties and uncertain market conditions.

According to Guliz Ozturk, CEO of Pegasus Airlines, the airline is interested in ordering new narrow-body aircraft after 2029. In an interview with Bloomberg, Ozturk confirmed that Pegasus expects a total of 2029 new single-aisle jets from Airbus by 64, including 36 A2023-321neo aircraft already ordered in 200.

"After 2029, we need to work on a new order. If we see demand here, we want to increase capacity," said Ozturk. She made it clear that there is currently no fixed timeline for an official announcement. However, the airline appears to be strategically preparing for long-term demand trends.

Current fleet and delivery delays

Currently, Pegasus Airlines' fleet includes 107 aircraft, including six A320-200s, 46 A320-200Ns, 45 A321-200NXs and ten B737-800s. Despite long-term plans to unify the fleet, Ozturk believes that having aircraft from two different manufacturers is an advantage given the current delivery delays.

By the end of the first quarter of 2024, Pegasus Airlines expects to deliver 15 aircraft this year. Another 2025 aircraft are to follow in 2027, 2028, 2029 and 2026, while eight aircraft are planned for XNUMX. Two of these aircraft were supposed to arrive in time for the summer season, but there were delays.

Financial challenges

However, Pegasus Airlines is facing significant financial problems. Mehmet Nane, the company's chairman, spoke openly about the airline's financial difficulties at a lunch at the Aviation Club UK. "We are losing money. We have seen a 5% decline in gross margin in three years. This is not sustainable," Nane said, according to a report by FlightGlobal.

According to its financial statements, Pegasus Airlines reported a net loss of 2024 billion Turkish Lira, equivalent to approximately 3,5 million USD, in the first quarter of 107. Rapidly rising costs and economic instability in Turkey have put a significant strain on the airline's financial performance.

Despite these challenges, Pegasus Airlines remains committed to consolidating and expanding its market position. The strategy of having both Airbus and Boeing aircraft in the fleet provides the airline with a certain degree of flexibility and mitigates the risk of delivery delays and production problems.

The long-term plans to expand the fleet are a clear signal of the airline's confidence in the future of air travel. At the same time, however, Pegasus Airlines must restore its financial stability in order to be able to grow sustainably.

The coming years will be crucial for Pegasus Airlines, both in terms of economic recovery and the successful implementation of its expansion plans. The airline must focus on reducing its operating costs, increasing efficiency and at the same time improving the service it provides to its passengers in order to survive in a competitive market.

Comment

  • Peter Kemp , 25. June 2024 @ 17: 42

    This article is a misreading of the interview with Bloomberg. As with most airlines, Pegadis made a loss during the winter .. it will be VERY profitable over whole year. Also, look at last two years industry leading profits + some of the best operating margins in the world. They have only kept the 10 older Boeing aircraft due to high demand.. an additional 10 A321s will arrive this year.

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Editor of this article:

Amely Mizzi is Executive Assistant at Aviation Direct Malta in San Pawl il-Baħar. She previously worked in the Aircraft and Vessel Financing division at a banking group. She is considered a linguistic talent and speaks seven languages ​​fluently. She prefers to spend her free time in Austria on the ski slopes and in summer on Mediterranean beaches, practically on her doorstep in Gozo.
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Amely Mizzi is Executive Assistant at Aviation Direct Malta in San Pawl il-Baħar. She previously worked in the Aircraft and Vessel Financing division at a banking group. She is considered a linguistic talent and speaks seven languages ​​fluently. She prefers to spend her free time in Austria on the ski slopes and in summer on Mediterranean beaches, practically on her doorstep in Gozo.
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Comment

  • Peter Kemp , 25. June 2024 @ 17: 42

    This article is a misreading of the interview with Bloomberg. As with most airlines, Pegadis made a loss during the winter .. it will be VERY profitable over whole year. Also, look at last two years industry leading profits + some of the best operating margins in the world. They have only kept the 10 older Boeing aircraft due to high demand.. an additional 10 A321s will arrive this year.

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