Alexa
  • Directory of Taiwan

Cyprus Airways posts euro1.17 million net profit after 4 years of losses

Cyprus Airways posts euro1.17 million net profit after 4 years of losses

Troubled state carrier Cyprus Airways announced Tuesday a euro1.17 million (US$1.73 million) net profit for 2007, following a four-year streak of losses.
Although small, the profit stands in stark contrast to the company's combined net losses of euro46.5 million (US$69 million) over the previous two years.
"Cyprus Airways appears to have finally won its wager for survival," said Kikis Lazarides, the airline's board chairman.
Overall revenue increased to euro288.7 million (US$427.7 million) in 2007 _ a 7.6 percent year-on-year rise. The results have not yet been formally audited.
Lazarides credited the turnaround to management's "steadfast adherence" to a restructuring plan to cut costs from the money-losing airline that officials had warned was on the verge of collapse.
Cyprus Airways management last year secured an euro78 million state-guaranteed bailout loan to keep the airline aloft, and raised euro25.1 million from shareholders through a capital increase in December 2007.
Lazarides also urged employees to shelve threatened strike action over the airline's joint venture with Swissport consortium to provide ground services at the island's two airports. Cyprus Airways workers fear the deal would put their jobs at risk, but management deny that.
To appease workers, Lazarides said most of the airline's 2007 profits would be divided equally among all employees on top of their salaries. Also, the airline would grant an annual salary increment ranging between 2.5 and three percent.


Updated : 2021-05-18 08:55 GMT+08:00