Page 61 - TURKRptMar20

Pegasus is targeting net income of between €210mn and €250mn in 2020, ​the company said in January​. Its Ebitda (earnings before interest, tax, depreciation and amortisation) margin for this year is projected to be between 32% to 32.5%.
Turkish Airlines has ended all domestics flights (except for Ankara) from Sabiha Gokcen, according to reports in local media, effectively leaving travellers with no other option but to use the city’s mega airport, Istanbul Airport, which serves as the flag carrier’s main hub.
Local media have run stories about passengers’ Istanbul Airport complaints since it became properly operational in April 2019. Critics take aim at its inconvenient location (with few public transportation links) and diverted flights, particularly during the winter season because of strong winds and unfavourable weather conditions in the area.
The distance from the airport to the city centre is around 55 kilometres and the cost of a taxi ride to Istanbul Airport is around Turkish lira 150 (€23). A new metro line between the city centre and Istanbul Airport is scheduled to open sometime in 2020.
It has been widely reported that because of the inconveniences many passengers have switched to using Sabiha Gokcen over Istanbul Airport for domestic flights.
Pegasus targeted an Ebitda margin of 22.5-23.5% for 2019, it said in January 2019. In June 2019, it revised its Ebitda margin target to 25.5-26.5%.
In January-September last year, Pegasus’ revenues increased by 16% on an annual basis to €1.3bn while its net income rose 37% to €199mn.
Turkey’s leading low-cost carrier Pegasus flies to 110 destinations in 42 countries. Pegasus has a fleet of 83 aircraft made up of 47 Boeings and 36 Airbus planes.
The number of passengers it carried in 2019 dropped 0.3% from 2018 to 29.9mn. International passengers jumped 17.2% y/y to 13.7mn while domestic travellers dropped 11.5% y/y to 15.7mn.
Pegasus served 2.57mn passengers in January, up 9.4% y/y​. The passenger load factor improved from 85.5% to 89.8%, the airline added in a filing with Borsa Istanbul on February 17.
The number of domestic passengers carried rose by 2.9% on an annual basis to 1.43mn, while the international traveller tally was up 19% y/y to 1.14mn.
Pegasus managed to increase the number of passengers it served by 7.7% in 2018 to a total of 30mn people. The domestic passenger volume rose 4.8% y/y to 17.7mn while the international passenger volume moved up 12% y/y to 11.7mn.
Pegasus operated charter flights since 1991. Following its acquisition by Esas Holding at the beginning of 2005, Pegasus changed its business model, introducing a low-cost network carrier model for the first time in Turkey. In 2013, the company held an initial public offering (IPO) to sell a 34.53% stake.
● Others
JPMorgan has reportedly been selected as an adviser for the sale of a stake in the $7.3bn Gebze (outside Istanbul)-Orhangazi-Izmir motorway in Turkey​. The final section of the 426 km-long motorway was inaugurated last
61​ TURKEY Country Report​ March 2020 ​ ​www.intellinews.com