ISTANBUL – Pegasus Airlines announced a net profit of ₺5.1 billion for the second quarter of 2025, falling 13% short of the market consensus of ₺5.9 billion. The figure compares with a net profit of ₺4 billion in the same quarter last year and a net loss of ₺2.6 billion in the previous quarter.
The company’s Q2 results showed strong revenue growth but higher costs weighed on profitability. Sales revenue rose 44.6% year-on-year to ₺38.4 billion, in line with expectations, while cost of sales increased by 51%, putting pressure on net income. Net investment income of ₺1.8 billion supported the bottom line, but net financing expenses of ₺3.6 billion (around €108 million) were a major drag on earnings.
Gross profit reached ₺8.1 billion, with the gross margin declining 3.36 percentage points to 21.17% due to rising operating costs and a 1.1-point drop in load factor.
EBITDA Growth but Margin Decline
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 32% year-on-year to ₺10.6 billion, in line with market forecasts, with a sevenfold increase from the previous quarter. However, the EBITDA margin slipped 2.63 points to 27.76% from 30.39% a year earlier.
In euro terms, Q2 revenue was €876 million, up 15% year-on-year, EBITDA was €252 million (+11%), and net profit reached €122 million (+9%), compared to a market forecast of €134 million.
First Half 2025 Performance
In the first six months of 2025, revenue increased 41% year-on-year to ₺62 billion. The EBITDA margin fell 1.76 points to 21.06%, while EBITDA grew 29% to ₺12 billion. Net debt rose 42.5% year-on-year to ₺137.8 billion, with a net debt-to-EBITDA ratio of 3.99.
Operating activities generated ₺9.9 billion in cash, while investment activities resulted in a ₺8.8 billion outflow and financing activities a ₺18.6 billion outflow.
Passenger Traffic and Capacity
Total passengers carried in Q2 rose 14% year-on-year to 10.7 million, with international passengers up 18% to 6.9 million and domestic passengers up 8.6% to 3.9 million. Overall load factor dropped 1.1 points to 86.4%, while international load factor fell 1.2 points to 84.2%. Available Seat Kilometers (ASK) rose 17% overall and 19% for international flights. Revenue per ASK (RASK) fell 2% to €0.0441.
Outlook Revised
Pegasus raised its 2025 ASK growth guidance from 12–14% to 14–16%, aiming to outperform the market. However, due to macroeconomic and geopolitical conditions, the RASK outlook was revised from “mid-single-digit increase” to “mid-single-digit decrease.”
The Cost per ASK (CASK) forecast was cut from “mid-single-digit increase” to “low-single-digit decrease,” while ex-fuel CASK guidance was lowered from “high-single-digit increase” to “low-single-digit increase.” The company expects fuel costs per unit to drop by more than 10% in 2025, offsetting the impact of higher non-fuel costs.
Pegasus now forecasts an EBITDA margin of 26–27% for 2025, down from the previous “flat/slight increase” outlook, but still positioning the airline among those with the highest operating profitability globally.
If you’d like, I can merge this Pegasus Q2 report with the earlier FDI, retail/trade, ICBC, and ATA GYO stories into a comprehensive mid-2025 Türkiye economy and business bulletin. That would make it ideal for a single, cohesive publication.
Source: Bloomberght/ Prepared by: İlayda Gök