Cyprus Airways

Changes ahead for Cyprus Airways as it implements turnaround plan and seeks new owner

Cyprus Airways is facing intensifying competition in its local market while it contends with falling revenue and rising expenses. A turnaround plan is underway to streamline the airline’s operations in attempt to strengthen the carrier prior to raising new capital and a potential sale to a strategic investor. All the while low-cost carriers are growing in influence in the key Cyprus-Europe market.

In 2011 Cyprus Airways’ revenues were down 10.1% to EUR212.4 million while operating costs grew 1.9% to EUR264.7 million, primarily from rising fuel prices. The negative result was attributed to the ongoing economic downturn along with “intensifying competition in the main markets” where the airline operates. The flag carrier expects to be impacted further by Greece’s financial crisis while unrest in the Middle East is expected to continue to create uncertainty.

Europe's fringe carriers look for partners to overcome financial crisis; Cyprus Airways latest

Airlines on Europe's southern and eastern periphery are becoming more precariously positioned, but are looking for for partners to help overcome the growing financial crisis. Cyprus Airways is the latest such carrier, and reported a widening in first half losses in the six months to 30-Jun-2011, as lower top-line revenue fell and higher fuel costs squeezed the airline in the period. Cyprus Airways is also turning to implementing a raft of measures aimed at stemming operating losses.

Air China tops airline Enterprise Value rankings; Delta second; no LCCs in top 10

It would appear China has already reached its aim of creating a world-beating "super carrier" – at least in terms of financial size. Air China is by far the world’s biggest airline, based on a current ranking of listed airlines’ Enterprise Values (EV) assembled by the Centre for Asia Pacific Aviation (CAPA).

So you think you know your airline market capitalisation: Part 3

The first part of this three-part report on airline market capitalisations described how Air China is valued more on the stock exchange than US carriers United-Continental, JetBlue, Hawaiian Air, AirTran, US Airways, American Airlines, Republic Airways and Skywest combined. In this final section, CAPA reviews some further interesting facts from the equity investment world.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.

Cyprus Airways' fortunes bound to tourism and ties to Greek economy

The history of Cyprus Airways is, for the most part, tied to politics. More recently, the demise of two carriers – in northern Turkish Cyprus and the south – and a marked drop-off in tourism to the island have pushed economics ahead of politics as a primary concern.