Pegasus: Increase in Fuel Costs Has Not Been Reflected in Ticket Prices
Although there has been a major increase in jet fuel costs due to developments in the Middle East, this situation has not yet been reflected in tickets.
Drawing attention to the negative impacts of the conflicts in the Middle East on oil prices and tourism, Pegasus official Nane announced that despite a 70 percent increase in jet fuel costs, this cost has not yet been reflected in ticket prices.
Effects of the War in the Middle East
It was stated that the effects of the war in the Middle East are felt through the increase in oil prices and tourism. Due to the conversion rate of crude oil into jet fuel, it was noted that the increase in oil prices is reflected in aviation at twice the rate.
It was recorded that falling short of the expected number of tourists in Iran created a negative impact for the tourism sector.
Revenues and Cost Increases
According to the information shared at the Airports Council International Airport Experience Summit, revenues in the first 6 months of the year showed an increase of 26 percent compared to the same period of last year.
On the other hand, it was emphasized that a significant increase of 70 percent occurred in jet fuel prices during the same period.
Hedge Ratios and Budgeting
It was conveyed that the company is 62 percent hedged against fuel costs, while globally this rate is generally below 50 percent.
It was reported that while there was a 30 percent increase in oil prices in the first 6 months of the year, the increase in Pegasus' fuel costs reached 70 percent.
Status of Ticket Prices
It was clearly emphasized that despite the high cost increases experienced, this situation has not yet been reflected in ticket prices.
Information was shared that developments are closely monitored on a monthly basis and dynamic budgeting is carried out within the company.