Cyprus Airways Posts H1 Loss On Passenger Drop

August 29, 2009 | Airline Industry

Cypriot national carrier Cyprus Airways posted a net loss of EUR3.48 million euros (USD$5 million) in the first half of the year, with higher losses avoided by gains on the sale of older aircraft.

Revenue fell 17 percent to EUR116.3 million on a 53,000 drop in passenger numbers compared with 2008.

“This is a result of the global economic crisis, which is having a negative impact on the airline, both in terms of passenger movement and on fare yields, (and) which is expected to continue for the rest of the year,” the airline said in a statement on Friday.

Losses to June 30 were mitigated by a EUR4.5 million gain on the sale of three planes.

The airline, which made a net loss of EUR7.2 million in the first six months of 2008, said in an August 26 profit warning it expected its full-year 2009 results to be worse than 2008, when it posted a net profit of EUR1.74 million.

Cyprus Airways is majority owned by the Cypriot government and underwent extensive restructuring in 2006 and 2007 under an EU-sanctioned rescue package.

source : Reuters

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