Turkish low-cost carrier Pegasus Airlines has finalized a transformative agreement with CFM International to acquire up to 300 LEAP-1B engines, setting the stage for aggressive fleet expansion. The deal, valued at approximately $5.9 billion USD (around €5.5 billion), includes spare engines and extended maintenance services spanning a decade. This strategic investment signals Pegasus’ confidence in scaling operations to surpass 40 million annual passengers.
🔥 Quick Facts
- 300 LEAP-1B engines on order from CFM International for Boeing 737-10 aircraft
- $5.9 billion USD total contract value including maintenance services over 10 years
- Engine deliveries beginning in 2028 as Boeing 737-10s enter service
- Pegasus currently operates 127 aircraft with a majority of next-gen Airbus A320neo and A321neo models
Powering Europe’s Most Profitable Airline Through Next-Gen Engines
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Pegasus Airlines has established itself as Europe’s most profitable low-cost carrier with one of the youngest fleets in global aviation. The new engine agreement directly supports the airline’s ambitious growth trajectory as it adds Boeing 737-10 aircraft to its exclusively modern fleet. CFM LEAP-1B engines deliver superior fuel efficiency and reduced emissions compared to previous-generation powerplants.
The December 2025 announcement reflects Pegasus’ decision to partner exclusively with CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines. This choice underscores confidence in next-generation propulsion technology as the airline prepares for sustained expansion across European, Middle Eastern, and North African markets.
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Between January and November 2025, Pegasus carried nearly 40 million passengers, representing a 15 percent increase over the same period in 2024. The airline projected surpassing 40 million total passengers in 2025 with load factors averaging 87.4 percent—among the highest in European aviation. Delivering 300 new engines directly enables additional aircraft operations to accommodate growing demand.
The fleet expansion strategy includes firm orders for 100 Boeing 737-10 aircraft with 100 additional options, all scheduled for delivery beginning 2028. Each 737-10 seats approximately 210 passengers in Pegasus’ typical high-density configurations, meaning significant capacity increases across the coming years.
Maintenance and Long-Term Partnership Framework
| Key Contract Element | Details |
| Engine Type | CFM LEAP-1B (300 units) |
| Aircraft Compatibility | Boeing 737-10 MAX |
| Contract Value | $5.9 billion USD with 10-year maintenance |
| Delivery Timeline | 2028 onwards as aircraft enter service |
| Spare Engines Included | Yes, with long-term support agreement |
CFM will provide maintenance services covering the full 10-year performance contract period. This arrangement ensures Pegasus maintains operational continuity with predictable maintenance costs factored into the airline’s financial planning. The partnership extends beyond engine supply into comprehensive technical support.
Strategic Growth Within Europe’s Competitive Aviation Market
Pegasus simultaneously announced the December 8, 2025 acquisition of Czech Airlines and Smartwings for $179 million, expanding its operational footprint into Central Europe. Combined with 300 new engines on order, Pegasus positions itself to capture additional European capacity as key competitors manage fleet transitions. The airline now operates routes across 158 destinations in 55 countries.
Receiving the World’s 2nd Youngest Aircraft Fleet Award 2025 in the category of airlines operating 100+ aircraft demonstrates Pegasus’ commitment to modern operations. Combining young next-gen Airbus jets with incoming Boeing 737-10 MAX aircraft powered by ultra-efficient LEAP engines reinforces competitive advantages in revenue management and cost control.
What Does This Engine Deal Mean for Pegasus’ Competitive Position Going Forward?
The scale of this engine commitment—300 units worth nearly $6 billion—signals aggressive international expansion ambitions through 2030 and beyond. Pegasus aims to operate significantly larger aircraft fleets while maintaining profitability margins that currently exceed peer airlines. The LEAP-1B engines deliver promised 20 percent fuel savings compared to older turbofan technology, directly supporting margin expansion even amid fuel price volatility.
With Czech Airlines and Smartwings integration, plus execution of Boeing 737-10 delivery schedules, Pegasus targets becoming Europe’s third-largest low-cost carrier by capacity. The $5.9 billion engine investment represents management confidence that demand fundamentals support decades of profitable air travel growth across European leisure and business markets.
Patrick Graham is a business and finance journalist translating Wall Street’s complexities into stories that matter to everyday readers. With extensive experience in financial journalism and economic analysis, this expert journalist provides sharp insights on market trends, corporate developments, and the economic forces affecting daily life. His reporting helps readers make sense of the business world’s biggest moves.