Cyprus Airways posts €19 million loss

CYPRUS Airways (CY) today posted a €19 million loss, hit by intensified competition and rising fuel costs.

At the same time, the airline said it was drafting an action plan that included an increase of share capital and cutting labour costs, in a bid to secure its viability.

“Implementation of the measures of the Action Plan will lead to a drastic reduction in the operating losses for the current year in comparison to 2011 and it will have a favourable impact on the long term viability of the Company,” CY said in a statement.

Efforts to find a strategic investor will continue, it added.

The government, which owns 70 per cent of the airline, has said it wanted a strategic investor who could potentially assume a majority stake in the company.

Cyprus Airways said 2011 results reflect stiffening competition in its major markets and higher fuel costs.

They also feature a non-recurring expense from a redundancy scheme, and one-offs in income including a slot exchange at London Heathrow and profit from the sale of an aeroplane and three engines.

Past attempts to prop the ailing carrier have included overhauls and staff cutbacks