Cyprus Airways: Non-audited Interim Management Statement

Cyprus Airways Public Ltd (the "Company") informs investors that on Friday, 18 November 2011, the Board of Directors of the Company met and approved the non-audited Interim Management Statement of the Company for the period from 1 July 2011 to 18 November 2011, that has been prepared in accordance with article 11 of the Transparency Requirements (Traded Securities in Regulated Markets) Law 2007 and is presented below.Non-audited Interim Management Statement for the period 01/07/2011 - 18/11/2011

The Board of Directors of Cyprus Airways Public Limited (the "Company") presents the Interim Management Statement of the Company for the period from 1 July 2011 to 18 November 2011, that has been prepared in accordance with the provisions of article 11 of the Transparency Requirements (Traded Securities in a Regulated Market) Law of 2007 (Ν. 190(Ι)/2007) and has not been audited by the Company's external auditors.

The main activities of the Company, which is the transportation of passengers and cargo, as well as other airline related services, remain the same.

The most significant events and transactions that took place during the reporting period, as well as their impact, where applicable, on the consolidated financial statements, are presented below:

a) The Company in order to cushion the impact of the forecasted limited demand which came as a result of the continuing financial crisis and the intensifying competition in the main markets where it operates, reduced the available seats in the market by 336 thousand or 17,0% for the period January-October 2011 as compared to the same period of last year. The number of passengers carried in the same period were lower by approximately 210 thousand or 15,0% from last year and the passenger load factor rose to 73,1% in comparison to 71,6% in the respective period of last year.

b) The strikes of the air traffic controllers of Greece, either warned or unexpected, had a significant impact on the costs of the Company as a result of the delays experienced in view of the fact that only the Greek airspace can be used for its flights to Europe due to the prohibition to overfly the Turkish airspace, beyond the inconvenience caused to the passengers.

c) The Company proceeded with the sale of one spare engine (Trent 700) and the sale of another spare engine (V2500-A5) is expected to be completed within the next few days. The cash inflow has been estimated at US$15 million and the profit on disposal at €7,6 million.

d) In September 2011, an agreement with ILFC was signed in relation to the lease of two A321-200 aircraft for six years with delivery dates in April and June 2012. In conjunction with the said agreement, the lease expiration dates of the two A330-200 aircraft were amended to December 2011 and January 2012, which is about one year earlier than the lease expiry dates. The early redelivery of the A330 aircraft is expected to bring about significant improvements to the operating result of the Company.

e) Negotiations for the renewal of the collective agreement have commenced, in which the Company will seek to remove existing distortions in its mode of operation, so that it is further rationalized and savings in labour costs are brought about.

f) The agreement for the exchange of slots at Heathrow airport with Virgin Atlantic provides for more convenient departure and arrival flight times from Larnaca to London Heathrow and vice-versa as from 30 October 2011. Furthermore, additional financial benefits will be brought about to the Company following full implementation of the said agreement.

Further information on the developments will be presented with the announcement of the Company's indication of results for the year 2011 by the end of February 2012.