Pegasus Airlines Acquires Smartwings for $179M, Ending LOT Interest
Turkish low-cost carrier Pegasus Airlines has announced a transformative $179 million (€154 million) acquisition of Czech carrier Smartwings and its shareholder Czech Airlines, pending regulatory approval. The deal, announced December 8, 2025, represents a major expansion milestone for Pegasus and concludes months of speculation surrounding the Czech carrier’s future ownership.
The acquisition ends competitive bidding efforts by Poland’s LOT Polish Airlines, which had appeared close to securing Smartwings in November 2025. Under the agreement, Pegasus will acquire both Smartwings and Czech Airlines, which served as a holding company following its 2024 absorption into the Smartwings Group.
Pegasus Airlines CEO Güliz Öztürk emphasized the strategic significance: “At Pegasus Airlines, we set out in 2005 with a bold ambition—to make air travel accessible to everyone. Since then, we’ve expanded our fleet from 14 to 127 aircraft, becoming one of the world’s most efficient and profitable airlines. Now, by joining forces with Czech Airlines and Smartwings, which have a combined fleet size of 47, we’re opening a new chapter in our growth journey.”
The transaction combines substantial route networks and operational capabilities. Pegasus currently operates 158 destinations across 55 countries, while Smartwings and Czech Airlines collectively serve 80 destinations in 20 countries. Post-acquisition, the combined entity will access 238 destinations across 75 countries, significantly expanding European connectivity.
Jiří Šimáně, shareholder of Czech Airlines and Smartwings co-founder, highlighted the sellers’ confidence in Pegasus’s stewardship: “We are confident that Pegasus Airlines represents the ideal shareholder for Czech Airlines and Smartwings, one that will bring millions of passengers across its network new benefits, enhanced connectivity, and a continued joy of travel.”
A key aspect of the acquisition strategy involves maintaining both brands’ distinct market positioning. Management has outlined plans to operate Smartwings and Pegasus Airlines as complementary carriers, spreading operations across Europe while preserving brand differentiation and customer base loyalty.
The transaction valuation of €154 million includes both airline operations and related receivables. However, completion remains conditional upon obtaining mandatory regulatory approvals and satisfying transfer conditions—a standard requirement for cross-border airline acquisitions in Europe. Pegasus emphasized its strategic commitment: “The strategic investment aims to strengthen the company’s presence in Europe and support its continued global expansion.”
Established in 1990, Pegasus has positioned itself as one of the world’s most efficient low-cost carriers. This acquisition demonstrates its evolution from a regional Turkish operator into a pan-European aviation force, capable of competing with established European carriers while maintaining operational efficiency and profitability margins.
Source ID: SRCE-2025-1765188331000-1232