Pegasus saw a strong recovery in demand in the second quarter, but the weakness of the euro affects its results | New

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Turkish airline Pegasus saw international capacity and traffic surpass pre-Covid levels in the second quarter of this year as leisure demand in particular “exceeded initial expectations”.

The development helped the carrier achieve operating profit of 28 million euros ($28.5 million) for the three months ending June 30, Pegasus said Aug. 15, with strong momentum from demand which should continue for the rest of the year, in a “significantly improved outlook”. for operational profitability” and “high yields in high season”.

A net loss of 40 million euros in the second quarter was partly attributed to an “unrealized foreign exchange loss of 45 million euros net”, however, as the euro weakened against the US dollar.

Still, record second-quarter revenue of 504 million euros was up 24% from the same period in 2019 and reflected high yields and ‘robust’ ancillary performance, says Istanbul-based carrier . It came as total passenger numbers were at 88% of 2019 levels with 110% capacity on the same basis.

International seats accounted for 56% of Pegasus’ total during the period, with the 3.8 million passengers carried on these services marking an increase of 200,000 from 2019 levels. Domestic passenger numbers, however, fell by 1 million to 2.8 million on the same basis.

A domestic load factor of 78% and international of 79% in the second quarter compared to 92% and 83% respectively over the same period of 2019.

Pegasus notes that an 81% increase in fuel expenses resulted in a 129% increase in overall costs year-over-year, driving up the cost per available seat-mile by 27% compared to 2019.

The carrier generated 160 million euros of cash during the quarter, leaving its cash reserve – after deducting bank loans and debt instruments – at 237 million euros, compared to 77 million euros at the end of the first trimester.

Full-year capacity is expected to be 5-10% above 2019 levels.

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