Pegasus Airlines plans to start working on its next aircraft order in the coming months, according to its CEO, as the Turkish low-cost carrier aims to sustain its rapid growth into the next decade.
Pegasus, which has seen a rapid recovery in travel after the pandemic, placed an order for 36 Airbus A321neo planes in July 2023, taking its total orders since 2012 to 150.
Sixteen will be delivered this year and the remaining 52 by the end of 2029, Güliz Öztürk told an interview with Reuters.
Production slots at the two dominant planemakers Airbus and Boeing are sold out for many years, resulting in long wait times for airlines wishing to replace and grow their fleets.
"Beyond 2029, as long we want to grow – and we want to grow, the demand is there – we have to go out with a new order," Öztürk said, adding that there are no specific decisions or studies yet.
Supply chain problems and delays in aircraft deliveries are in focus this week as airline CEOs, planemakers, engine manufacturers and lessors gather in Dubai for the International Air Transport Association's (IATA) annual meeting.
Safety concerns at U.S. planemaker Boeing and output delays at Airbus are forcing airlines to plan new aircraft orders well in advance to keep pace with the rapid rebound in air travel since the pandemic.
Pegasus has a mixed Boeing and Airbus fleet of 105 aircraft, but the fleet is dominated by European planemaker Airbus.
When asked whether the airline's dual fleet strategy has worked well, Öztürk said that while it may seem simpler to run a single fleet, "When you have delivery delays, it's good that you have the two manufacturers in the picture."
Pegasus has not faced any significant delays in deliveries from Airbus, she added.
For Öztürk, the biggest challenge is keeping pace with demand while managing costs at a time when geopolitical tensions and wars result in higher fuel prices and add to inflation.
She said despite the disruptions, the airline aims to achieve an operating profit margin of 28% to 30% in 2024.
The number of passengers it served in April rose 22% year-over-year to 2.92 million, with seat occupancy rate climbing 7.8 points to 88.3%.
From January through April, the number of passengers reached nearly 11 million, a 27% increase from a year ago.
The passenger count increased by 19% to 31.93 million in the whole of 2023, up from 26.94 million in 2022.
The budget carrier expanded its network to add 20 new international routes in 2023, including to Amman, Warsaw and Birmingham, taking its total to 138 in 53 countries.
Pegasus, which took delivery of 15 new Airbus planes last year, had to take three more jets on wet lease to meet demand. A decision to fly its Boeing planes longer than initially planned is also to ensure capacity, Öztürk said.
It plans to add more routes this year. Within the six-hour range that its current fleet can fly, there are 67 countries and 500 destinations, Öztürk said.
"There is still untapped potential," she said.
