National flag carrier Cyprus Airways (CY) more than doubled its losses in 2012 to 56 million Euros.
The main factor behind a sharp revenue reduction was the drop in passenger volumes. CY says that this year will also be challenging given that its two main markets are Greece and Cyprus; both of which are suffering severe economic problems.
CY will be looking to cut costs this year and reduce flights as well. Current employee numbers of 1000 will be reduced to around 600.