Cyprus Airways: Gaza war led to 41% drop in passenger traffic

The conflicts in the Middle East have negatively impacted Cyprus Airways, with the airline announcing a 41% reduction in passenger traffic and a 12% drop in flights compared to last year.

According to the airline, operations to both Tel Aviv and Beirut were temporarily suspended, due to safety concerns. Additionally, flights to Yerevan required adjustments in flight paths, leading to extended travel times.

“This change, coupled with the existing limitations of using Turkish airspace, has necessitated a strategic reevaluation of our route efficiency and competitiveness,” Cyprus Airways said in a press release.

The reduction in traffic was offset by a 21% increase in revenues, a 115% increase in average fares and a significant increase in the net income position, the airline noted.

Routes like Dubai, Paris and Milan also performed better and helped Cyprus Airways compensate for its losses.

Looking ahead, Cyprus Airways is adapting to the current operational environment. CEO, Paul Sies, remarks, “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. 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.

“The situation, while unfortunate, has not deterred our commitment to providing quality service. We’re redirecting our resources effectively, including deploying one of our A320 aircraft for exclusive operations with our partner, Aegean, and increasing our 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”, added Sies.