Cyprus Airways scrapes full-year profit

By David Kaminski-Morrow

Preliminary Cyprus Airways results indicate it achieved a full-year net profit of €1.74 million ($2.2 million) last year, a rise on the previous figure of €1.16 million but slim margin on its €311 million revenues.

These revenues were up nearly 8%, which Cyprus Airways attributes to an increase in passenger numbers as well as fuel surcharges.

Operating expenses rose nearly 10%, however, and operating profit fell from €5.4 million to €1.9 million at 31 December 2008. Fuel expenditure was up by 42% to €97 million.

"Cyprus Airways operates in a highly-competitive environment which has become even more unfavourable as a result of the global financial crisis," says the airline.

It stresses that peace in labour relations is the "cornerstone" of its plans for survival and stable development.

Cyprus Airways says it has "sufficient liquidity" to meet obligations without drawing on short-term banking facilities, and adds that its fleet renewal efforts - including sale of three older aircraft and the lease of newer jets - will bring "significant economic benefits".

But it says the uncertainty of the current economic downturn is preventing it from making any accurate forecasts for 2009.