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.