THE Cyprus Airways Group yesterday announced pre-tax profits of £4.0 million for 2001, compared to £5.6 million the previous year. After-tax profits clocked in at £2.3 million.
The group’s revenue, excluding its duty-free shops operation, rose £16.3 million from £162 million in 2000 to £178.3 million last year, an increase of 10.1 per cent.
Operating costs went up from £165.5 million in 2000 to £182.4 million last year, an increase of 10.4 per cent, or £17.2 million.
Excluding extraordinary income of £901,000 from the sale of shares in France Telecom, and a £6.6m profit from Cyprus Airways Duty Free Shops Ltd, the group would have ended the year with pre-tax losses of £3.4 million. Sales of duty free goods came to £51.6 million in 2001, up from £46.2 million in 2000, an increase of £5.4 million or 11.7 per cent.
According to an announcement by the airline, the September 11 terrorist attack on the US had immediate negative effects on an already troubled international air transport industry, affecting passenger psychology and airline revenues, particularly in terms of increased insurance costs.
“Cyprus Airways is one of the few airlines in the world which rose to the occasion without state help,” the announcement said. “Our increase in revenue is based on increased passenger numbers and an increase in flights.”
The airline expanded its 12-strong fleet in 2001 by leasing two additional Airbus A320s, one of which went to its charter arm Eurocypria. The extra leasing and operational costs of the two new aircraft contributed to the group’s increased expenditure in 2001, it said.
As part of its expansion strategy for 2002, Cyprus Airways will take delivery of two new Airbus A319s, one at the end of next month and one in June. The airline will also take delivery of two new Airbus A330s, one by the end of this year and the other in the beginning of 2003. One of its two large A310s will be sold.
The airline has bought the smaller A319s in order to increase the frequency of flights in the region and also has plans to branch out into Greece this year after pulling out of the bidding for Greece’s ailing carrier Olympic Airways last August.
The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.
