Cyprus Airways: Capacity cut 17% in 2010

Cyprus Airways board approved (21-Nov-2011) the carrier's interim results between 01-Jul-2011 and 18-Nov-2011. The carrier outlined the following events and transactions that affected its financial statements for the period:

• Reduced capacity (seats) by 17% year-on-year during the first 10 months of 2011 resulting in a 15% decline in passenger numbers. Load factor rose 1.5 ppts to 73.1%;
• Proceeded with the sale of two spare engines expected to be completed within the next few days, which is expected to bring cash inflow of USD15 million and profit on disposal of EUR7.6 million;
• In Sep-2011, an agreement with ILFC was signed in relation to the lease of two A321 aircraft for six years with delivery dates in Apr-2012 and Jun-2012. In conjunction with the said agreement, the lease expiration dates of the two A330-200 aircraft were amended to Dec-2011 and Jan-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;
• Commenced negotiations for the renewal of the collective agreement seeking to remove existing distortions in its mode of operation, which will result in savings in labour costs;
• The agreement for the exchange of slots at London Heathrow with Virgin Atlantic provides for more convenient departure and arrival flight times from Larnaca to London Heathrow and vice-versa as from 30-Oct-2011. Furthermore, additional financial benefits will be brought about to the company following full implementation of the said agreement. [more - original PR]