Pegasus announces second quarter earnings

Pegasus announced a net profit of TL 1.9 billion in the second quarter of 2023, above market expectations. Pegasus announced a net profit of TL 1.925 billion in the second quarter of 2023, above expectations of TL 1.25 billion in net profit. TL-based EBITDA was TL 4.7 billion, above expectations of TL 3.9 billion, while turnover was TL 15.1 billion, above expectations. In foreign exchange terms, the company announced a net profit of € 91 million in the second quarter of the year. The company had announced a loss of € 22 million in the first quarter of this year and € 40 million in the second quarter of the previous year. EBITDA in euro terms increased from € 104 million in the second quarter of last year to € 221 million. EBITDA margin also increased from 20.6 percent to 33.6 percent in the same period. The EBITDA margin of 33.6 percent was the best second-quarter performance in the company's history. Total costs increased by 8 percent annually in the second quarter. Despite the 16 percent decrease in fuel costs, personnel costs increased by 68 percent, and this item was one of the main factors increasing total costs. In line with the ongoing strategic positioning, international seat supply increased by 33 percent in the second quarter compared to the previous year and constituted 66 percent of the total seat supply. The total number of guests grew by 21 percent in this quarter. The number of international guests increased by 35 percent compared to the previous year. Total ancillary revenues increased by 61 percent in this quarter, while ancillary revenues per guest grew by 34 percent. As a result, total sales revenues increased by 30 percent in the second quarter of 2023 compared to the second quarter of 2022. Pegasus welcomed 5.3 million passengers on international lines in the second quarter Pegasus welcomed 3 million passengers on domestic lines and 5.3 million passengers on international lines in the second quarter of the year. Pegasus's international guest count grew by 35 percent in the second quarter compared to the same period of the previous year. The number of domestic passengers in the second quarter was below the 3.8 million passengers recorded in the second quarter of 2019. On the international lines front, the second quarter figure was well above 2019. The increase in unit revenues continued in the second quarter of 2023. The company's domestic scheduled unit revenue (including ancillary revenues) stood at TL 563 per guest, while it was above TL 452 in the same quarter of the previous year. International scheduled unit revenue, on the other hand, decreased in euro terms in this quarter compared to the previous year. While international scheduled unit revenue per guest was 75 euros, this figure was 60 euros in the same period of 2019 and 79 euros in 2022. Ancillary revenues per guest reached 26.2 euros in the second quarter. This amount was 19.5 euros in the same quarter of the previous year. Pegasus' total cash and cash equivalents stood at 956 million euros as of the end of June. The positive cash position, calculated by deducting bank loans and issued bonds from total cash reserves, increased from 372 million euros at the end of 2022 to 443 million euros at the end of June 2023. The company also announced its expectations for the future. Pegasus stated that since unit revenues showed a very strong trend in the summer season of 2022 due to the recovery of postponed demand, there will be a significant high base effect in annual comparisons for the third and fourth quarters of 2023. Pegasus maintained its forecast for a 20 percent increase in total supply capacity in 2023 compared to 2022, while ancillary revenues per guest for the entire year were projected to grow by approximately 10 percent. It was announced that the revenue-expense difference per seat kilometer offered is expected to normalize in the 3rd and 4th quarters compared to last year's high levels, in light of current unit revenue and jet fuel price forecasts. In addition, Pegasus' forecast for 2023 EBITDA margin to be around 30 percent was maintained.