Pegasus Airlines has closed its acquisition of Czech Airlines and Smartwings Group, a move that reshapes the low-cost and leisure carrier landscape in Central and Eastern Europe. The deal, finalized on 1 October 2026 after securing all regulatory approvals, brings together three brands under one umbrella, with a combined fleet exceeding 175 aircraft and firm orders for 140 additional jets.
The Turkish carrier, which has operated a low-cost model since 2005, now gains a significant foothold in the Czech and Slovak markets. Smartwings, a leading leisure airline with strong ties to tour operators, will continue to operate under its existing brands—Smartwings and Czech Airlines—while leveraging Pegasus's network and operational expertise.
Strategic rationale and network impact
For Pegasus, the acquisition is a cornerstone of its European expansion strategy. The airline currently serves 161 destinations across 57 countries, and the addition of Smartwings' 80 destinations in 20 countries extends its reach into key leisure markets such as Spain, Greece, and Portugal. The combined network will offer travelers more direct connections between Turkey, Central Europe, and popular holiday destinations.
Güliz Öztürk, CEO of Pegasus Airlines, emphasized the complementary nature of the two carriers. "Together we can grow further and offer our guests more choice than any of us could alone," she said. "This partnership combines our operational strengths and opens new opportunities for innovation and development."
Jiří Šimáně, co-founder of Smartwings, echoed that sentiment, highlighting the potential for value creation. "We are excited to join forces with Pegasus," he said. "Our combined scale and expertise will allow us to enhance customer experience and operational excellence, connecting more people and destinations across Europe and beyond."
Operational continuity and future growth
Smartwings will retain its brand identity and continue to serve its existing routes, including its Prague hub and operations from other Czech and Slovak cities. The airline's partnerships with tour operators remain intact, ensuring a steady flow of leisure traffic. Pegasus, meanwhile, will integrate Smartwings' operations into its broader network, potentially adding new routes that leverage the combined fleet.
The deal comes at a time when European aviation is consolidating, with carriers seeking scale to compete against legacy groups and ultra-low-cost rivals. Pegasus's move mirrors similar strategies by other low-cost carriers, such as Turkish Airlines' recent fleet expansion, as airlines position for post-pandemic recovery and rising fuel costs.
Industry analysts note that the acquisition gives Pegasus a stronger hand in the competitive Central European market, where it will now compete directly with Ryanair and Wizz Air. The combined entity's order book of 140 aircraft provides a clear path for growth, with deliveries expected over the next several years.
For travel agents and tour operators, the consolidation means a broader range of products and potential pricing power. Smartwings' existing charter contracts with European tour operators will be honored, while Pegasus's scheduled services offer new booking options for agents.
The acquisition also aligns with broader trends in the industry, such as rising jet fuel costs that are prompting airlines to rethink schedules and fares. By combining networks, Pegasus and Smartwings can optimize aircraft utilization and reduce unit costs.
As the integration proceeds, the focus will be on harmonizing IT systems, loyalty programs, and operational procedures. Pegasus has a track record of successful integration, having grown rapidly through organic expansion and strategic partnerships. The company's CEO expressed confidence in the process, noting that the combined team would work to deliver a seamless experience for passengers.
With the acquisition complete, Pegasus Airlines now ranks among the largest low-cost carriers in Europe, with a network that spans from the UK to the Middle East. The addition of Czech Airlines, one of the oldest carriers in the world, adds a legacy brand with a rich history, though its operations have been significantly reduced in recent years.
Travel industry stakeholders will be watching closely to see how the combined carrier evolves, particularly in terms of route development and competitive pricing. The deal is expected to close all regulatory hurdles, and the first joint schedules are anticipated for the summer 2027 season.
