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Pegasus Airlines sees credit rating upgraded on back of strong performance

Pegasus Airlines has announced an upgrading of its credit rating reflecting its positive financial performance in 2022.

The Turkish lowcost carrier’s long-term credit rating has been upgraded from B+ to BB- by Fitch Ratings and from B to B+ by S&P Global Ratings.

The two international credit rating agencies also revised the credit rating of the senior unsecured debt issued by Pegasus Airlines accordingly.

Fitch and S&P attributed the rating upgrade to Pegasus Airlines’ strong operational and financial results in 2022 and the subsequent quarterly period.

Pegasus Airlines said it recorded the highest EBITDA among global airline operators with a margin with 34.1% and the lowest non-fuel unit cost (CASK, non-fuel) with 2.18 euro cents, based on public data.

In 2022, Pegasus Airlines increased the number of passengers it carried by 34%, and grew its revenue by 139%, year-on-year.

The airline also achieved €69 million EBITDA and a 15.1% EBITDA margin in the first quarter of 2023, the highest first quarter performance in the company’s history.

Barbaros Kubatoğlu, chief financial officer of Pegasus Airlines, said: “Despite 2022 starting with challenges for the aviation industry due to the Omicron variant and a backdrop of macroeconomic and geopolitical tensions, it ultimately became a year of rapid travel demand recovery compared to the pandemic period.

“The year continued with a strong summer season and presented a favourable operating environment for airlines that were well-prepared for this resurgence.

“In 2022, which we started operationally and financially well prepared, we achieved the best financial performance in the global aviation sector, by managing our operations effectively in parallel with robust demand.

“It is of great significance to us that our 2022 performance, which continues with the same success in the first quarter of 2023, is recognised by independent rating agencies, and that this performance is also emphasised as sustainable.”

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