Executive Chairman of Cyprus Airways Kikis Lazarides announced here today profits for the second year in a row, saying that this development comes after four years of consecutive losses, which amounted to 150 million euro and threatened the survival of the airline.
Speaking at a press conference, Lazarides announced 1.7 million euro after tax profit for the year ending on the 31st of December 2008, compared to 1.2 million euro in 2007.
He said these results were achieved despite the unprecedented increase in fuel prices, the effects of the financial crisis and the costs relating to the company's overused fleet.
''During a period when dozens of airlines filed for bankruptcy and others were on the brink of collapse, recording huge losses that led them to downsize their fleet and carry out massive job cuts, our company managed to resist the pressures and even more increase profits'', Lazarides said.
He added that for 2008 CY fuel costs increase by 29 million euro, relative to 2007, rising to 96.9 million in 2008 compared to 68.2 million in 2007.
Lazarides made special reference to the targeted measures that took place during the past two years allowing the company to enjoy profits yet again. These measures have been implemented by the Board and the Management on the basis of the guidelines provided by the Restructuring Plan with the ultimate aim of achieving greater flexibility and productivity.
He also made a reference to the partial renewal of the company's fleet in an effort to control costs and increase efficiency. Already the company has acquired an Airbus 319 and has completed the sale of one of the oldest A320, with the company having attained the option to sell two more aircraft at the same price. Reference was made to the letter of intent that was signed between CY and an Irish leasing company for two A320 for a period of six years, having an option to renew one or both agreements for either 12 or 24 months.
The company will enjoy significant financial benefits from the fleet renewal, Lazarides said.
Reference was made to the joint venture on ground services with Swissport and the ongoing improvement that has been achieved in the quality of the services provided.
''CY acknowledge the tough times lying ahead and understand that the prospects for all airlines are all but rosy. Already we are beginning to sense the adverse effects resulting from the financial crisis'', he said.
''The company is keeping a close eye on ongoing developments and will respond accordingly and adjust when required to do so'', Lazarides concluded.
