Smartwings snubs LOT, opts for merger with Pegasus Airlines

Despite multiple weeks of rumors that had seemingly paired Smartwings with LOT Polish Airlines, Pegasus Airlines has confirmed that it has reached an agreement to acquire the Czech carrier pending regulatory approval.

On December 8, 2025, Pegasus Airlines confirmed that it reached an agreement with Smartwings to acquire the Czech airline. Valued at €154 million ($179.6 million), the transaction, which “encompasses both companies and related receivables,” will have to be approved by regulators, including the European Commission (EC).

“With this acquisition, Pegasus Airlines aims to combine the experience and resources of both carriers to create an organisation ready for the future, offering passengers a wider network and affordable fares.”

Güliz Öztürk, the Chief Executive Officer (CEO) of Pegasus Airlines, said that the Turkish airline has had an ambition to make air travel accessible for everyone since 2005. Since then, it has grown its fleet of aircraft from 14 to 127, with the carrier also recently placing orders for a further 236 aircraft, split between 200 Boeing 737 MAX 10 (100 firm, 100 options) and 36 Airbus A321neos in December 2024 and July 2023, respectively.

According to Öztürk, the two companies share the same vision: to spread wings across Europe with two distinct brands, with the merger being not only about growth but also about creating “resilient, technology-driven companies that put safety at the heart of operations and are prepared to meet the future to deliver easy, personalised and efficient travel experiences.”

Pegasus Airlines’ CEO concluded that the low-cost carrier has transformed aviation in Turkey, and is now ready to take the next step forward, reiterating that Smartwings and Pegasus Airlines will continue as two separate brands.

Jiří Šimáně, the founder of Smartwings, added that the group is confident that the Turkish carrier will be the ideal shareholder for the Czech carrier, “one that will bring millions of passengers across its network new benefits, enhanced connectivity, and a continued joy of travel.”

“The management and shareholders extend their sincere gratitude to all employees, partners, and passengers for their loyalty, trust, and contribution to the company’s success.”

According to planespotters.net, Smartwings has 45 aircraft in its fleet: four A220-300, two A320ceo, 24 737-800, two 737-900ER, and 13 737 MAX 8s. Pegasus Airlines, meanwhile, has 127, including 6 A320, 46 A320neo, 66 A321neo, and nine 737-800 aircraft.

While Smartwings, which also owns Czech Airlines, has not published its financial results since 2018, Pegasus Airlines, as a listed company, has. The Turkish carrier ended Q3 2025 with a net profit of €227 million ($264.6 million) and cash and cash equivalents of €1.5 billion ($1.7 billion), with debts of more than €2.8 billion ($3.2 billion), leaving it with plenty of cash to acquire Smartwings.

However, until Sunday, December 7, LOT Polish Airlines had been the leading suitor to acquire the Czech carrier. On that day, money.pl reported, citing people familiar with the matter, that the two sides had failed to reach an agreement, which potentially opened the door for Pegasus Airlines to swoop in and acquire the Czech airline group.