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Increased losses for CAIR

29/06/2012 12:51
The financial results of Cyprus Airways for the first have of 2012 are expected to be negative, according to an announcement released today.

CAIR said that this is mainly attributed to the continuing financial crisis and the intensifying competition in the main markets where the Company operates, especially by low cost carriers that receive subsidies.

The national carrier will receive a state support of €31 million via a capital increase in order to become viable.

According to the announcement, it is expected that the results of the second half of the year will record improvement following the implementation of the Restructuring Plan of the Company.

It should be noted that the results of the same period last year included the non-recurring benefit which arose from the exchange of slots at London Heathrow airport between the Company and Virgin Atlantic Airways as well as the profit from the sale of one A320-200 aircraft and one aircraft spare engine.

They also included the non-recurring cost of redundancy compensation relating to employees who left the Company’s employment following the implementation of the Redundancy Scheme.

According to its indicative results, CAIR suffered losses of €19 million in 2011 against profits of €0.2 million in 2010.