Bailout Boosts CY Airways 2010 Results
After issuing a profit warning in late 2010 and delaying the announcement of its full-year results by over two weeks, Cyprus Airways said it avoided heavy losses in 2010 with a last-minute bailout of 20 million euros.
The state-owned company reported a profit of 215,000 euros after stating that its full-year losses would be more loss making than in 2009 when it lost 3.3 million euros.
A last-minute cash injection of 20 million euros from the House of Parliament as compensation for losses due to a ban on Turkish airspace has - at least temporarily - put the company back in the black.
The company's income was 236.2 million in 2010 compared to 247.4 million in 2009. Gross operating loss was 13 million euros compared to 147,000 euros in 2009. The 18.6 million euros that put the company's results into the black was reported as 'other income'.
Minister of Finance Charilaos Stavrakis has warned that even with the cash bailout, Cyprus Airway's future is still uncertain amid increased competition and a weaker global economy.
In order to secure its long term viability an action plan has been prepared by Cyprus Airways, said the company in a statement.
"In this respect both the Board of Directors of Cyprus Airways and the Trade Unions have accepted the Mediation Proposal of the Minister of Labour for employee concessions for 2011 and a compensation scheme for redundant staff," said Cyprus Airways.