Pegasus Airlines (PGSUS) 4Q25 Financial Results

We assess Pegasus’ 4Q25 results as negative, as both operational performance and net profitability came in below our expectations. The company reported TL424mn in net profit in the final quarter, significantly below our estimate of around TL1.7bn and also below the market consensus of TL466mn. The deviation in net profit was mainly driven by weaker-than-expected operational performance and differences in one-off items. We also observe that rising geopolitical risks stemming from the Middle East have recently created short-term pressure on the stock performance. Accordingly, we revise our target price to TL300 per share from TL314 while maintaining our BUY recommendation. Despite potential near term volatility, we believe the company’s increasing capacity, expanding flight network, and ongoing fleet modernization continue to support its long term growth outlook.