High fuel prices could drive Cyprus Airways to losses for 2008, despite initial projections of millions in profits, the airline's chairman said Tuesday.
Initial projections for 2008 had the airline posting a profit of 8 million-10 million (US$12.5 million-15.7 million), Kikis Lazarides said. But rising fuel prices burdened the airline with an additional 45 million (US$70.7 million) in costs.
"The situation at the airline today is not the most ideal because of the increase in the price of oil," Lazarides told reporters after talks with Cypriot Finance Minister Charilaos Stavrakis.
Lazarides said the airline has taken steps to minimize possible losses. But he said it would go ahead with a planned partial renewal of its fleet of 11 Airbus planes.
Lazarides said the airline will lease newer Airbus jets to replace three older A320 planes.
Cyprus Airways had posted a 1.17 million (US$1.84 million) net profit for 2007 to snap a four-year streak of losses.
