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Cyprus Airways issues profit warning

Direct News Source

01-Jul-2010 Cyprus Airways Public Ltd (the “Company”) informs investors that its financial results for the first six monthly period of 2010 are expected to be significantly more loss making compared to those of the comparative period of 2009.

In this respect it is noted that the results of the first six monthly period of 2009 included the non recurring profit which arose from the sale of three of the Company's aircraft.

The worsening of the financial results is mainly due to the global financial crisis and the consequential increase in competition which impacts the airline industry particularly adversely and has led to a reduction in the number of passengers carried and in yields, something which has significantly reduced the Company's revenue.

Additionally the results of the first six monthly period of 2010 were adversely affected by the volcanic eruption in Iceland that led to the closure of a large part of Northern European, including the United Kingdom's, airspace from the 15th to the 21st April 2010.

The Company's results for the period under review were also adversely affected by the very significant increase in the cost of fuel in relation to the comparative period of last year.