Pegasus Hava Tasimaciligi Anonim Sirketi (PGSUS) Q4 2023 earnings summary

Executive summary

• Record 2023 passenger traffic reached 31.93m, up 18.5% YoY; ASK rose 22.2% to 58.217bn.

• Sales reached ₺70.53bn, up 65% YoY; revenue in euros increased 9% to €2,670mn.

• EBITDA was €838mn, flat YoY, with a 31.4% margin; net profit reached €790mn, including €420mn of deferred tax income. Reported profit in lira was ₺20.91bn.

Financial highlights

• Revenue in euros rose 9% YoY to €2,670mn; scheduled passenger revenue was €1,814mn and ancillary revenue €810mn.

• Q4 revenue decreased 10% YoY to €609mn and EBITDA fell 43% to €131mn; EBITDA margin was 21.5%, down from 34.1%.

• Lira-reported sales were ₺70.53bn, up 65%; gross profit reached ₺16.82bn and operating profit ₺13.08bn.

• Lira-reported profit before tax was ₺10.11bn and profit for the period ₺20.91bn, up 194%; earnings per share was ₺204.37.

• Total assets were ₺201.96bn, up 111%, and equity was ₺54.67bn, up 203%.

Outlook and guidance

• 2024 total ASK is planned to grow 10%–12% YoY.

• 2024 ancillary revenue per passenger is budgeted to grow by mid-to-high single digits; non-fuel CASK is expected to increase by mid-to-high single digits, with wage inflation a key cost pressure.

• Management expects to remain among the leading global EBITDA-margin generators in 2024.

• Fleet plan includes 16 A321neo deliveries in 2024, 3 in 2025, 8 in 2026 and 11 annually in 2027–2029.

• Targets include reducing flight-related carbon emissions per passenger-kilometer 20% by 2030 versus 2019 and net-zero emissions by 2050.