Pegasus Airlines of Turkey targets to reduce costs as tourism sector suffers




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Turkish low-cost carrier (LCC) Pegasus Airlines is undertaking a major cost reduction program as it battles to offset the continuing effect of slumping inbound tourist traffic to the nation. The LCC is revisiting existing contracts, reducing staff numbers and taking a careful look at marketing activities as it focuses on reducing costs. Within the airline’s overall plan for a major fleet refresh, the company is selling those aircraft that become due for their first engine overhauls. It is also operating a sale-and-leaseback policy on major equipment items such as spare engines and cockpit simulators and has begun dynamic pricing of ancillary products.

Pegasus gave the information as part of its financial update for the nine-month period of its financial year. During the period, the Istanbul-based carrier increased turnover 4.5% year-on-year to TL2.9 billion ($862 million). In EBITDAR terms, earnings were TL540.4 million compared to a corresponding figure of TL636.6 million last year.

SOURCE: http://atwonline.com/airline-financials/turkey-s-pegasus-airlines-aims-reduce-costs-tourism-slumps

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