Cypriot airlines dismiss rumors after Bloomberg article

Airlines operating out of the Republic of Cyprus reportedly have denied rumors that they could be going under, following trouble with Romanian Blue Air and a Bloomberg report warning about the island’s two carriers.

According to Bloomberg, Europe’s smaller airlines face more risks this winter after member states that rescued carriers during the pandemic were focusing their tax money elsewhere.

Bloomberg suggested Europe’s top airlines could absorb low risks but pointed out a number of weaker companies, including one in the Republic of Cyprus, were most exposed in a highly competitive post-pandemic market.

“The most exposed carriers include one from Cyprus and two from Albania, as well as airlines based in Belarus, Bulgaria, the Czech Republic, Georgia, Moldova and Romania,” Bloomberg said.

But Cyprus Airways and Tus Airways, two airlines operating out of the Republic of Cyprus, have denied they were having money problems according to Economy Today.

Cyprus Airways CEO Paul Sies said the company had a very positive summer following a steady leasing of aircraft operating for other companies, ET said, adding that the official pointed to a dynamic program ahead.

ET also reported that Tus Airways CEO Ahmed Aly made references to the company’s growth since starting back in 2015, adding that the company doubled its fleet in 2022 and managed to overcome financial challenges.

But Bloomberg’s unapologetic report penned on Monday by Christopher Jasper came as Romania’s low-cost carrier Blue Air announced it was suspending flights for two weeks after Bucharest blocked its accounts for failing to pay an environmental fine.

Jasper cited Bernstein analysts Alex Irving and Clementine Flinois who used “a new model for assessing bankruptcy risk according to levels of competition and capacity, route networks and likely costs from leasing and replacing planes.”

With smaller profit margins in a volatile market, weaker companies will have to be extra careful as they line up all tools at their disposal to respond to financial challenges and route networks.

“That should favor the strongest players in Eastern Europe, chiefly Budapest-based Wizz and Ryanair, according to Bernstein, which it said have the ability to rapidly allocate jets to newly vacated markets,” Bloomberg said.

Back in July Cypriot tourism deputy minister Savvas Perdios admitted this year was not going to be without problems, citing big losses in travel from Russia and Ukraine.