Cyprus Airways CAIR announces CYP 33.5 mln loss

Majority state-owned airline Cyprus Airways (CAIR) announced net losses after of CYP 33.5 mln in 2004, a 160% increase on the losses of CYP 20.9 mln recorded in 2003.

The huge losses come in spite of a 3.6% an increase in (non-HellasJet) passengers, which failed to boost the bottom line because of a fall in the average return on fares.

Operating expenses rose to CYP 236.7 mln in 2004 compared with CYP 223.9 mln in 2003.

Among reasons cited for the sharp jump in losses were the liberalisation of air transport in 2004 and the abolition of duty-free sales from May 1. Duty-free income fell to CYP 44.4 mln in 2004 from CYP 56.8 mln in 2003.

The management said it was taking a series of steps for Hellas Jet and asked the government for continued co-operation.

Meanwhile, Cyprus Airways stewards union, SYPKA ordered its members to go on an indefinite strike from Monday 4.00pm after the airline proceeded with the forced redundancies of 22 chief stewards as part of its efforts to cut costs.

CAIR management declared the 22 positions as surplus with its press spokesman, Tassos Angeli saying the layoffs will save the airline some CYP 200.000 in cost savings.