Aviation Turkey: First of all, thank you for sparing time for our readers. Can we start our interview by getting an overview of 2024 from Pegasus Airlines’ point of view? Can you elaborate on Pegasus Airlines’ performance in terms of the number of passengers, revenues, profitability, destinations and fleet? 

Güliz Öztürk: At Pegasus Airlines we are dedicated to providing the best possible travel experiences to our guests, which was our focus in 2024, and continues to be so today. 

In 2024, Pegasus Airlines demonstrated impressive growth, further solidifying its position as a LCC leader globally, launching 23 new international routes in countries such as Slovakia, Scotland, Portugal, Spain, Ireland, Egypt, and Kazakhstan. We now fly to 146 different destinations in 53 countries, comprised of 37 destinations within Türkiye, and 109 across Europe, MENA and Central Asia.  

In 2024, we carried 37.48 million guests, rising 17% from 31.93 million in 2023.  We carried 23.42 million guests on our expanding international network and 14.06 million on our domestic network, also equating to 17% year-on-year growth on both our domestic and international networks. 

We also continued to renew and expand our fleet, adding 16 new aircraft in 2024.  The Pegasus fleet is now comprised of 118 aircraft with an average of 4.5 years, as of 31 December 2024, and is now one of the youngest fleets in the world.  

We also ended the year with an exciting development of great significance to us and our future goals. We signed a contract with Boeing for 200 Boeing 737-10 aircraft in December 2024. This largest order in our history will support our growth plans while providing us with major advancements on our path to achieving our 2050 sustainability targets. 

We are proud that Pegasus Airlines also continued to be one of the most profitable and operationally efficient airlines globally, delivering outstanding financial results and financial resilience again in 2024 despite the challenging global environment. Indeed, as reported in our last published third quarter financial results, for the first nine months of 2024, Pegasus Airlines revenue reached EUR 2.37 billion, translating to 15% year-on-year growth. 

With our strong financial and operational performance, whilst prioritising the customer experience, we continue to provide ever-greater value for our guests, and we are seeing the results of this success in our continued double-digit growth. 

Aviation Turkey: As of January 2025 Pegasus Airlines has a total of 118 aircraft in its fleet, which is dominated by Airbus. How many of the 118 aircraft in your fleet are leased, and how many are owned by Pegasus Airlines?

Güliz Öztürk: As of December 31, 2024, six of our aircraft are owned by us (B737-800s) while 90 aircraft are on financial lease and 22 aircraft are on operational lease.  

Aviation Turkey: In July 2023 Pegasus Airlines signed an agreement with Airbus for 36 new A321neo aircraft, the delivery of the 36 newly ordered aircraft, in addition to its existing orders (with this additional order the total number of A320/A321neo aircraft has reached 150), is planned to be completed by the end of 2029. Can you share details about the delivery schedule and annual quantities of the remaining 52 A321neo aircraft from this order, which are planned to be delivered by the end of 2029?

Güliz Öztürk: That is correct and we are looking forward to receiving another nine A321neos in 2025, ten in 2026 and eleven in each of the three following years up to 2029.  The average seat count of the fleet will then reach 228 at the end of 2029, from 191 at the end of 2021, and we are happy that the increasing share of new generation seats is making a significant contribution to our efficiency gains.

Aviation Turkey: Pegasus Airlines flies schedule services to 37 Destinations in Turkey and 109 in the rest of the world, with a total network of 146 destinations in 53 countries in three continents. Can you provide information about Pegasus Airlines' expectations and strategic goals for 2025?

Güliz Öztürk: In terms of our expectations for 2025, we believe the outlook for low-cost airlines in 2025 continues to be generally positive, with expectations of continued growth and profitability.  Indeed, IATA forecasts passenger numbers reaching 5.2 billion in 2025, a 6.7% increase from 2024, indicating robust demand for air travel. IATA also forecasts that global airline industry revenues will surpass $1 trillion for the first time in 2025, with net profits expected to reach $36.6 billion. We are also seeing a more favourable fuel environment which is expected to continue reducing the pressure on operating profitability. Some operational challenges are likely to remain, including ongoing supply chain constraints, but for us, these have always been minimal with no significant impact on our operations or planning.

Regarding our strategic goals for 2025, our primary goal this year continues to provide the best digital experience with ever-greater value for our guests’ travel . We will also be working to further strengthen our leading position in the aviation sector. We will be continuing to expand and modernise our fleet to reach more guests and broaden our flight network for ever-greater choice with the lowest fares possible. 

We place great trust in the growing efficiency of our modern fleet, which plays a crucial role in both managing costs and achieving our sustainability goals. Reducing carbon emissions and playing our part in the fight against climate change at a corporate level are among our top strategic priorities for 2025. A significant portion of our carbon footprint stems from the jet fuel we employ. In 2023, we became the first airline to use Sustainable Aviation Fuel (SAF) at our main hub, Istanbul Sabiha Gökçen. Last year, we also further expanded our international SAF supply network.

Another key focus for us this year is to continue to leverage the power of technology to improve the guest experience. Our goal is to become one of the top three airlines in the world in terms of technology utilisation. For this reason, technology will be one of our key investment areas in 2025. 

At our Pegasus Innovation Lab, which we established in Silicon Valley in December 2023, we are working on various optimisation and planning projects in collaboration with startups in the region. We have also formed a dedicated team to integrate these new technologies into our processes.  Additionally, we maintain close ties with universities and have, for example, begun a partnership with Berkeley to further strengthen our innovation efforts.

Pegasus Airlines has also prioritised profitable growth as a core principle since we launched. Our high EBITDA margins, achieved through cost savings and efficiency improvements, are among the key indicators of our success. Effective cost management will remain a top priority this year as we continue to ensure the success of our business model and provide our guests with the best value possible.

Pegasus is growing, and we are doing so in exactly the way we envisioned—with high efficiency. We closed 2024 with an EBITDA margin in the range of 28-30%, and we aim to repeat this success in 2025.  As a low-cost carrier, we have consistently delivered industry-leading results in areas such as efficiency, cost management, growth, and operational profitability, making us a benchmark company in the sector. Our goal is to build on this strong performance and achieve even greater success in the future.

 Aviation Turkey: At present, Pegasus Airlines operates a mixed fleet of Airbus and Boeing single-aisle aircraft, which includes over 100 Airbus A320neo/A321neo aircraft, with over 52 on order and the 737-800 NGs but none of the MAX variant. The Boeing 737-800NGs in the fleet were supposed to be replaced with 9 A321neos to be delivered in 2025. So, while Pegasus Airlines was set to become a single-fleet operator by replacing the existing 737-800 NGs with A321neos, you have suprisingly placed your largest ever aircraft order to Boeing for the procurement of a total of 200 Boeing 737-10 (Boeing 737 MAX 10) aircraft. What can you tell us about the needs and advantages behind your order of 200 Boeing aircraft? There are claims that Boeing offered a significant price reduction to strengthen its position against Airbus. How accurate are these claims?

Güliz Öztürk:The largest order in Pegasus' history not only supports the company's mid and long-term operational and growth objectives, but also serves as an important step towards achieving its 2050 sustainability goals. We conducted detailed analyses on every aspect of the offer and evaluated every angle, including economical, operational aspects as well as the delivery timeline of the order. The 737-10 is also perfectly suited to meet Pegasus Airlines’ long-term capacity needs, offering enhanced efficiency and one of the best per-seat economics among single-aisle aircraft.

In 2024, we published our 2050 Net Zero Climate Transition Roadmap. We are aiming to manage growth through a set of actions. Investing in young and fuel-efficient fleet is the most tangible action we have right now and arguably for the next 10 years. Therefore, investing in Boeing 737-10 aircraft will support these goals. Powered by CFM International LEAP-1B engines, the aircraft stands out with 20% lower fuel consumption compared to previous-generation aircraft. LEAP-1B engines are designed to offer significant improvements in fuel efficiency, noise reduction, and emissions compared to previous generation engines. They are a key component in achieving our cost efficiency and sustainability goals as well as providing an enhanced overall passenger experience.

With a range of up to 5,740 km (3,100 nautical miles), Pegasus Airlines’ selection of the largest Boeing 737-10 model will also ensure capability and route flexibility to support its network expansion plans. With a seat capacity of up to 230 passengers, the Boeing 737-10 also offers an elevated experience due to its spacious cabin and large overhead luggage compartments. The new aircraft will be used on existing routes, but they will also be deployed to newly opened destinations in line with Pegasus’ growth strategy. This includes expanding into new markets and enhancing the service on current routes with a focus on destinations in Europe, the Middle East, Central Asia and Africa.

Pegasus continues to work with both Boeing and Airbus. This order strengthens the collaboration with Boeing, but the relationship with Airbus also remains strong. The aircraft deliveries with Airbus will continue until the end of 2029. The delivery of the new Boeing aircraft will start in 2028.  Pegasus has been operating a dual fleet since 2013 and while doing this, Pegasus has reached best in class for its cost base not only in the region but globally.  We are confident that we will retain this position with our order of 737-10 aircraft.

 Aviation Turkey: What contributions will the new Boeing 737 MAX 10 aircraft and LEAP-1B engines acquisitions of Pegasus Airlines with Boeing and CFM International bring to our country's aviation industry in terms of local production, technology transfer, R&D, training, and employment, and what economic value will be created in our country in this context?

Güliz Öztürk:As a leading stakeholder in our country’s tourism sector, which creates net cash inflows and the highest added value for our country and has shown record-breaking growth after the pandemic; we are working tirelessly to reach new record-highs and do our part for Türkiye to achieve the targeted 100 million visitors and 100 billion USD in revenue in tourism. Boeing aircraft have been an integral part of our operations since Pegasus entered the aviation industry in 1990. We are pleased to be expanding our fleet with the new Boeing 737-10 model aircraft. We are confident that our collaboration will create new opportunities for local manufacturing, technology transfer, R&D, training, and employment in the Turkish aviation industry.  When considered within the scope of Boeing’s National Aerospace Initiative launched with the Turkish government in 2017, our order will also open new doors and create production and export opportunities both for Turkish manufacturers and for the wider aviation industry.

Aviation Turkey: Could you briefly summarize Pegasus Airlines' long-term strategic growth plan for our readers?

Güliz Öztürk: At Pegasus Airlines, our long-term strategy focuses on sustainable growth, efficiency and innovation. We are expanding our fleet to support our growing network, which now spans 146 destinations across 53 countries. Efficiency remains key—we continuously optimise costs while maintaining industry-leading profitability. Technology is also a priority, with our Innovation Lab driving advancements to enhance every aspect of the travel journey. Sustainability is at the core of our vision, and we are committed to achieving net-zero carbon emissions by 2050 through next-generation aircraft and implementing measurable sustainability actions across our business, from reducing waste and recycling to deploying greater numbers of electric vehicles in our ground operations and increasing SAF usage. By focusing on these pillars, we aim to strengthen our position globally as a leading low-cost carrier and offer safe, easy and affordable travel to even more guests across our growing network