Pegasus Hava Tasimaciligi Anonim Sirketi (PGSUS) Q2 2024 earnings summary

Executive summary

• Total revenue reached €763mn in Q2 2024, up 16% year-over-year, and €1.28 billion for H1 2024, driven by growth in both international and domestic flights and ancillary services.

• Net income was €112mn in Q2 2024, up 23% year-over-year, but H1 2024 net profit dropped to €9.0 million due to higher financial expenses and operating costs.

• Passenger numbers rose 19% year-over-year in Q2 2024 and 23% to 17.43 million in H1 2024, with a record load factor of 87.5%.

• Ancillary revenue per passenger increased 7% year-over-year to €28.0 in Q2 2024; ancillary services contributed 36% of total revenue in H1 2024.

• International route network expanded to 106 destinations, with 141 total destinations across 53 countries.

Financial highlights

• EBITDA for Q2 2024 was €230mn, up 4% year-over-year, with an EBITDA margin of 30.1%.

• Gross profit for H1 2024 was €173.9 million, down from €193.4 million year-over-year.

• Operating profit before financial income/expense rose 62% to ₺4.8 billion in H1 2024.

• Cash and cash equivalents at period-end were €877.9 million, up from €493.6 million at year-end 2023; cash and equivalents also increased 92% to ₺30.8 billion.

• Net debt stood at €2.48bn as of June 2024, with cash reserves after deducting bank loans at €579mn.

Outlook and guidance

• Total ASK growth for 2024 is projected at 12–14%, up from previous 10–12% guidance.

• RASK expected to remain flat year-over-year in 2024, with mid- to high-single-digit growth in ancillary revenue per passenger.

• EBITDA margin for 2024 is forecasted in the 28–30% range.

• The company expects higher revenues in the second half of the year due to seasonality in air passenger transportation.

• S&P affirmed long-term credit rating at B+ (stable outlook); new debt issuance of up to $750 million approved.