The Group of Cyprus Airways recorded a loss of 32.1 million Euro, after tax, in the first ha1f of 2012 in comparison to a loss of 29.3 million Euro for the respective period of 2011, which is higher by 2.8 million Euro.

According to an announcement issued by the Cyprus Airways, this increase in the loss for the period can mainly be attributed to the reduction in revenue from the transportation of passengers and cargo by 19.2 million Euro or 21.2%, from 90.6 million Euro to 71.4 million Euro.

The operating loss for the first six months of 2012 increased by 3.9 million Euro to 33.8 million Euro from 29.9 million Euro in the comparative period of 20 11.

“In order to cushion the impact of a forecasted decline in demand, which came as a result of the continuing financial crisis and the intensifying competition in the main markets where the Group operates, reduced the avai1ab1e seats offered in the market”, the Group says.

“Consequently, the direct operating costs such as the en route charges, landing and handling fees and fuel cost were reduced. Decrease was also recorded in staff expenses, aircraft maintenance/engine overhaul cost and aircraft operating leases”, the company adds.

According to Cyprus Airways, the total decrease in operating expenditure, which includes cost of sales and administration expenses (excluding compensation on redundancy) was 17.5 million Euro or 14.3%, from 122.4 million Euro in the first half of 2011 to 1 04.9 million Euro in the respective period of 2012.

Regarding future prospects, the Group says that it is operating in a highly competitive and constantly changing environment and its future performance is “subject to a variety of factors some of which are beyond its control”.

“Following the implementation of the new restructuring plan which will be prepared by internationally reputable consultants, the strengthening of its share capital base by 45 million Euro and the continued efforts to find a strategic investor, the long term viability of the Group is expected to be secured”, Cyprus Airways says.