2023 FINANCIAL RESULTS PRESENTATION
March 2024
KEY HIGHLIGHTS
Another set of stellar results: EBITDA margin of 31.4% in 2023 marks one of the best performances in the world!
Traffic
- Total ASK grew 22% YoY in 2023, in line with the guidance provided. International ASK grew 26% YoY in 2023, standing 54% higher compared to 2019.
- Total passenger volume increased by 19% YoY in 2023. International passenger volume grew 24% YoY in 2023, standing 36% higher vs. 2019.
- International pax per cyle reached 169 pax in 2023 (173 pax in 4Q23), up from 161 pax in 2022 and 156 pax in 2019.
Financial Performance
- Revenues at EUR2.7bn in 2023 (+9% YoY, +54% vs. 2019). Ancillary rev/pax reached EUR25.4 (+9 YoY, +70% vs 2019).
- RASK-CASKspread amounted to EURc0.89 in 2023 (nearly 2x higher than historic avg.*). EBITDA** reached EUR838mn in 2023 (flat YoY, +45% vs. 2019), corresponding to an EBITDA margin of 31.4% - one of the best performances in the world!
- Net profit is at EUR790mn for 2023 (+83% YoY, +273% vs 2019). EUR420mn deferred tax income was recorded in 12/2023 P&L statement, stemming from the application of inflation accounting at the statutory accounts.
Outlook
- 10%-12%growth planned in total ASK for 2024.
- Market is expected to operate on a balanced demand-capacity supply in 2024, hinting at a flattish trend for yields. On the ancillary/pax front, our budget foresees a 'mid-to-high single digit growth' compared to 2023.
- Cost outlook remains to be challenging, particularly due to wage inflation. Under the current circumstances, CASK non- fuel is expected to increase by 'mid-to-highsingle digit' in 2024 over the 2023 level.
- We are confident that we will once again rank among the 'top EBITDA margin generators in the world' in 2024.
- Historic average for 2014-22. COVID period (2020 & 2021) excluded from the calculation
- EBITDA: Core EBIT+Depreciation expenses+55% of short term lease expenses (i.e. EUR14.6mn for 2023)
International ASK
Q4: +18%, 12M: +26% YoY
International Passengers
Q4: +14%, 12M: +24% YoY
International pax/cycle
Q4: +2 pax, 12M: +8 pax YoY
Revenues
Q4: -10%, 12M: +9% YoY
RASK-CASK spread
12M:€c0.89,+c.2x of hist. avg.
EBITDA margin
Q4: 21.5%%, 12M: 31.4%
2024E ASK
+10%-12% YoY
2024E Ancillary per pax
+mid-to-high single digit YoY
2024E CASK non-fuel+mid-to-highsingle digit YoY
ROUTE NETWORK
Size of the international route network reached 99 destinations.
Current Network
51 Countries
135 Destinations
36 Domestic, 99 Int'l
Announced additions to the int'l route network in 2023 & 2024
Istanbul Sabiha Gokcen
→ Plovdiv → Amman → Birmingham
- Kazan →Podgorica → Dortmund
→ Alexandria → Zagreb → Kutaisi
- Cairo *
Ankara
→ Moscow → Warsaw → Krakow
- Podgorica → Lisbon*
Antalya | |
→ Symkent | → Astana → St.Petersburg |
→ Krakow | → Warsaw |
Izmir
- Podgorica → Warsaw
Dalaman
→ Baku
Bodrum
→ Tel Aviv
Trabzon | |
→ Tel Aviv | → Dammam → Erbil |
Gaziantep | |
→ Cologne* | * Announced in 2024 |
3
OPERATING ENVIRONMENT
International passengers of Pegasus grew by 14% YoY in 4Q23, 24% YoY in 2023.
TÜRKİYE PAX. (mn)
PEGASUS PAX. (mn)
Domestic | ||||||
+16% | ||||||
+11% | ||||||
11.8 | 9.6 | 10.7 | 50.0 | 39.3 | 45.5 | |
4Q19 | 4Q22 | 4Q23 | 12M19 | 12M22 | 12M23 | |
Domestic | ||||||
10.0 | ||||||
9.0 | +10% | |||||
8.0 | +16% | |||||
7.0 | 16.1 | |||||
6.0 | 12.0 | |||||
5.0 | 4.1 | 10.9 | ||||
4.0 | 2.7 | 3.2 | ||||
3.0 | ||||||
2.0 | ||||||
1.0 | ||||||
0.0 | ||||||
4Q19 | 4Q22 | 4Q23 | 12M19 12M22 12M23 |
60 | ||
50 | ||
40 | ||
+5% | 30 | |
20 | ||
3.4 | 3.5 | 10 |
0 | ||
Jan'23 | Jan'24 |
70
60
50
40
+20%
30
20
0.9 1.1 10
0
Jan'23 Jan'24
International
80.0 | +19% | ||||||
70.0 | |||||||
60.0 | +10% | 49.2 | |||||
50.0 | 43.4 | ||||||
41.3 | |||||||
40.0 | +12% | ||||||
30.0 | 23.5 | 25.0 | 27.4 | ||||
20.0 | |||||||
10.0 | 6.9 | 7.7 | |||||
0.0 | |||||||
4Q19 | 4Q22 | 4Q23 | 12M19 12M22 12M23 | Jan'23 | Jan'24 |
International
20.0 | ||||||
18.0 | +24% | |||||
16.0 | ||||||
14.0 | +14% | |||||
12.0 | +27% | |||||
19.9 | ||||||
10.0 | 14.7 | 16.0 | ||||
8.0 | ||||||
6.0 | 4.3 | 5.0 | ||||
3.6 | ||||||
4.0 | 1.6 | |||||
2.0 | 1.2 | |||||
0.0 | ||||||
4Q19 | 4Q22 4Q23 | 12M19 12M2212M23 | Jan'23 Jan'24 |
90
80
70
60
50
40
30
20
10
0
70
60
50
40
30
20
10
0
Türkiye passenger data is taken from General Directorate of State Airports Authority, domestic passengers are divided by 2 in order to avoid double counting. | |
Pegasus figures reflect booked passengers, international pax includes charter pax | 4 |
SUMMARY FIGURES - P&L
Industry-leading operating profitability maintaned with the EBITDA* margin standing at 31.4% in 2023.
2023 | 2022 | YoY | |
EURmn, ANNUAL | 12M | 12M | % chg. |
Revenues | 2,670 | 2,449 | 9% |
Scheduled pax revenues | 1,814 | 1,755 | 3% |
Ancillary revenues | 810 | 626 | 29% |
Costs | 2,150 | 1,871 | 15% |
Fuel costs | 834 | 832 | 0% |
Personnel costs | 303 | 253 | 20% |
3 | |||
EBITDA * | 838 | 835 | 0% |
EBITDA Margin | 31.4% | 34.1% | |
Profit before tax | 370 | 403 | -8% |
Tax income/(expense) | 420 | 28 | n.m. |
Deferred tax inc./(exp.) | 420 | 28 | n.m. |
Net profit | 790 | 431 | 83% |
EURmn, QUARTERLY | 4Q23 | 4Q22 | % chg. |
Revenues | 609 | 675 | -10% |
Scheduled pax revenues | 400 | 475 | -16% |
Ancillary revenues | 198 | 192 | 3% |
Costs | 564 | 504 | 12% |
Fuel costs | 227 | 219 | 4% |
Personnel costs | 73 | 86 | -15% |
EBITDA * | 131 | 230 | -43% |
EBITDA Margin | 21.5% | 34.1% |
- Given that our functional currency is EUR, inflation accounting primarily impacts our financials through adjustments to deferred tax accounts.
- Deferred tax is computed based on temporary timing differences between statutory accounts and those reported under TFRS. Inflation accounting lead to a substantial increase in the net book value of fixed assets in statutory books, while the net book value in TFRS financials remains unaffected. Consequently, we have recognized a substantial deferred tax asset and a corresponding tax benefit.
* EBITDA: Core EBIT+Depreciation expenses+55% of short term lease
expenses (i.e. EUR14.6mn for 2023)
5
SUMMARY FIGURES - TRAFFIC & KPIs
Outstanding cost management performance against the challenging cost environment: CASK non-fuel at EURc2.26 in 2023.
2023 | 2022 | YoY | 2023 | 2022 | YoY | |
EURmn | 12M | 12M | % chg. | Q4 | Q4 | % chg. |
Revenues | 2,670 | 2,449 | 9% | 609 | 675 | -10% |
Costs | 2,150 | 1,871 | 15% | 564 | 504 | 12% |
Fuel costs | 834 | 832 | 0% | 227 | 219 | 4% |
Total Passengers (mn) | 31.9 | 26.9 | 19% |
International (mn) | 19.9 | 16.0 | 24% |
Total ASK (bn) | 58.2 | 47.6 | 22% |
International (bn) | 48.2 | 38.3 | 26% |
Load Factor | 84.8% | 83.6% | |
International | 83.1% | 82.6% | |
RASK | 4.59 | 5.14 | -11% |
CASK | 3.69 | 3.93 | -6% |
CASK non-fuel | 2.26 | 2.18 | 4% |
8.1 7.1 15%
5.0 4.3 14%
14.6 12.5 17%
11.9 10.1 18%
85.2% 85.5%
84.1% 85.7%
4.17 5.42 -23%
3.86 4.05 -5%
2.30 2.29 0%
International includes charter
6
REVENUES
2023 international scheduled revenues stand 70% higher compared to 2019.
2019 | 2022 | 2023 | ||
EURmn | Q4 | Q4 | Q4 | YoY chg. |
TOTAL REVENUES | 396 | 675 | 609 | -10% |
Domestic scheduled | 78 | 82 | 77 | -6% |
International Scheduled KPIs
2023 vs 2019, % growth
International scheduled | 190 | 393 | 322 | -18% |
70%
Ancillary | 116 | 192 | 198 | 3% |
Charter and Other | 12 | 7 | 11 | 54% |
RASK (EURc) | 3.62 | 5.42 | 4.17 | -23% |
2019 | 2022 | 2023 | ||
EURmn | 12M | 12M | 12M | YoY chg. |
TOTAL REVENUES | 1,739 | 2,449 | 2,670 | 9% |
Domestic scheduled | 336 | 311 | 307 | -1% |
57% | |
41% | 38% |
27% | 23% |
9% |
International scheduled | 884 | 1,444 | 1,507 | 4% |
Ancillary | 459 | 626 | 810 | 29% |
Revenues | Cycle | Seat (mn) ASK (m km) Pax (mn) pax/cycle | Yield |
Charter and Other | 61 | 68 | 46 | -33% |
RASK (EURc) | 3.96 | 5.14 | 4.59 | -11% |
7
SCHEDULED PASSENGER REVENUES
In 2023 vs 2019, while total capacity in ASK grew by 32%, the total scheduled unit revenue increased by 50%.
Passenger Yield - Sch. Domestic (TL)
Quarterly | 884 | Cumulative |
743 | ||
626 558 | 677 | |
563 | 497 | |
452 | 442 | |
289 | ||
174 |
Total Scheduled Passenger Revenue / Pax (EUR)
2019-2022-2023
95 | 135 | 122 | 132 | |||||||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2019 | 2022 | 2023 |
Passenger Yield - Sch. Int'l (EUR) | ||||||||||||||
Quarterly | Cumulative |
90.5
55.6
83.4 +50% vs 2019
Ancillary rev. per pax
129 | ||||||
84 | 92 | 98 | 94 | |||
79 | ||||||
75 | 77 | |||||
66 | ||||||
45 | 60 | 54 | 50 | 61 | 63 | |
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2019 | 2022 | 2023 |
Blended pax yield (sch.)
2019 2022 2023
8
ANCILLARY REVENUES
Ancillary revenue/pax reached EUR25.4 in 2033, in line with the guidance.
% share in Total Revenues
26% | 31% | 26% | 30% | |
1,100 | ||||
900 | 810 | |||
700 | 626 | |||
500 | 459 | |||
315 | ||||
300 | ||||
100 | ||||
-100 | 12M19 | 12M21 | 12M22 | 12M23 |
2018 12M
11.6
Ancillary Revenues (EURmn)
156 | 107 | 127 | 206 | 143 | ||||
93 | 45 | 93 | 52 | |||||
1Q19 | 1Q21 | 1Q22 | 1Q23 | 2Q19 | 2Q21 | 2Q22 | 2Q23 | 3Q19 |
Ancillary revenue per pax (EUR)
2022 12M
23.3
2019 12M
14.9
214 | 251 | 192 | 198 |
116 | |||
116 | 103 |
3Q21 | 3Q22 | 3Q23 | 4Q19 | 4Q21 | 4Q22 | 4Q23 | ||
4Q22 | 2023 12M | |||||||
27.1 | 4Q23 | |||||||
25.4 | 24.3 | |||||||
1100 900 700 500 300 100 -100
2018 Q1 | 2018 Q2 | 2018 Q3 | 2018 Q4 | 2019 Q1 | 2019 Q2 | 2019 Q3 | 2019 Q4 | 2022 Q1 | 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 |
9
COSTS
RASK-CASK spread amounted to EURc0.89 in 2023, nearly 2x higher than the historic average spread.
2019 | 2022 | 2023 | YoY | 2019 | 2022 | 2023 | YoY | |||||||||
Q4 | Q4 | Q4 | ||||||||||||||
Cost Items (EURmn) | % chg | 12M | 12M | 12M | % chg | |||||||||||
Jet fuel expenses | 122 | 219 | 227 | 4% | 497 | 832 | 834 | 0% | RASK-CASK spread (EURc) | |||||||
Personnel expenses | 56 | 86 | 73 | -15% | 222 | 253 | 303 | 20% | ||||||||
Maintenance | 28 | 16 | 23 | 44% | 61 | 78 | 72 | -8% | ||||||||
Depreciation | 64 | 59 | 83 | 40% | 244 | 257 | 304 | 18% | 0.89 | |||||||
Handling | 29 | 36 | 44 | 20% | 113 | 137 | 181 | 32% | ||||||||
Navigation | 23 | 28 | 35 | 25% | 92 | 110 | 150 | 36% | ||||||||
Landing | 12 | 15 | 22 | 48% | 50 | 56 | 89 | 60% | ||||||||
Pax service & catering | 4 | 4 | 7 | 65% | 15 | 14 | 25 | 77% | ||||||||
ST lease expenses | 0 | 0 | 5 | n.m. | 0 | 0 | 27 | n.m. | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2022 | 2023 |
Other expenses | 29 | 41 | 44 | 8% | 108 | 133 | 192 | 24% | ||||||||
TOTAL COSTS | 367 | 504 | 564 | 12% | 1,403 | 1,871 | 2,150 | 15% | ||||||||
CASK (€ cent) | 3.36 | 4.05 | 3.86 | -5% | 3.19 | 3.93 | 3.69 | -6% | ||||||||
CASK non fuel (€ cent) | 2.24 | 2.29 | 2.30 | 0% | 2.06 | 2.18 | 2.26 | 4% | ||||||||
Avg. 2014-22*0.45
* COVID period (2020 & 2021) excluded from the calculation of the average
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Disclaimer
Pegasus Hava Tasimaciligi AS published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 00:30:01 UTC.