articles | 15 December 2023

Cyprus Airways records revenue surge despite regional turmoil

National flag carrier Cyprus Airways this week announced that despite prevailing geo-political tensions in the Middle East, it still managed to record a growth in revenue in November 2023.

According to the announcement, the ongoing turmoil in the region compelled Cyprus Airways to make critical adjustments to its route schedule, leading to a 41 per cent decline in passenger numbers and a 12 per cent reduction in flight operations compared to the previous year. However, this setback was counterbalanced by a remarkable 21 per cent surge in revenues. The airline also saw a substantial 115 per cent increase in average fares, contributing significantly to an improved net income position. Amid safety concerns, Cyprus Airways temporarily suspended flights to Tel Aviv and Beirut, emphasising their commitment to passenger safety. Moreover, flights to Yerevan underwent alterations in flight paths due to regional tensions, leading to extended travel times. The company explained that these adjustments, combined with airspace limitations, prompted a strategic review of route efficiency and competitiveness.

In response to these challenges, Cyprus Airways swiftly implemented adaptive measures, demonstrating the airline’s agility in navigating evolving circumstances. Notably, routes to destinations like Dubai, Paris, and Milan bolstered the airline’s performance, compensating for the traffic loss incurred elsewhere.

Looking ahead, Cyprus Airways said that it is proactively adapting to the current operational environment. CEO, Paul Sies, commented that “despite the challenging regional circumstances, we’re encouraged by the resilience and adaptability of our operations.” “Not only, our strategic pricing and operational adjustments have led to noteworthy revenue increases,” he added, noting that “this improvement is partly attributed to our newly implemented AI-driven revenue management system and the introduction of Business Class, both enhancing our service offerings”. Continuing, Sies said that “the situation, while unfortunate, has not deterred our commitment to providing quality service”.

He explained that the company is redirecting its resources effectively, including deploying one of its A320 aircraft for exclusive operations with its partner airline Aegean, as well as increasing its charter flight frequencies. “Moreover, our recent success in securing several Presidential flight contracts and the upcoming launch of the Larnaca-Brussels route in early February are expected to positively influence our winter performance”, Sies concluded.

Furthermore, the company said that “in these changing times, Cyprus Airways remains dedicated to navigating through complexities with a balanced approach, prioritising safety, operational integrity and sensitivity to global events”. “The airline appreciates the continued support of our passengers and partners as we adapt and grow in these dynamic conditions,” Cyprus Airways concluded.

Source: Cyprus Mail

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