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Losses of more than €25m for CAIR

29/06/2011 09:43
Cyprus Airways are expected to show increased losses in the first half of 2011, despite the efforts for the Company’s consolidation.

According to an announcement released today, the loss for the first six monthly period of 2011 is expected to be slightly higher than that of the comparative period of last year.

“This can mainly be attributed to the continuing financial crisis and to the further significant increase in fuel prices”.

The Company received a state aid of €20 million in early 2011 and will proceed with a restructuring plan, which focuses on the reduction of the expenses and the increase in revenues.

Part of the spending cut concerned 156 redundant employees.

The results of the first six monthly period of 2011 include 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 engine.

They also include the non-recurring cost of redundancy compensation relating to employees who left the Company’s employment in the first six monthly period of 2011 following the implementation of the Redundancy Scheme.

The Company enjoyed profits of €0.2 million in 2010 against losses of €3.3 million in 2009.

Last year’s marginal profits are attributable to the state aid of €20 million that the Company received as an offset to the Turkish embargo.

In the first half of 2010, the losses stood at €25.5 million.

The Company expects that it will receive an annual state aid of €3.5 million.