On Feb. 26, Cyprus Airways, which had endured losses for four straight years, reported a EUR1.2 million (US$1.8 million) profit for 2007, reversed from a net loss of EUR7.4 million the previous year.

"After four difficult years of recording losses in the tens of millions, it appears that Cyprus Airways has finally been able to win the bet over its survival," Chairman Kikis Lazarides said at a news conference. "Prospects are favorable for registering a profit in 2008."

The airline said in a statement that it had "safeguarded its cash-flow through a government-guaranteed long-term loan" that reportedly is EUR78 million and "now [has] sufficient liquidity to meet its obligations as they arise." It added that it will continue implementing a restructuring plan that aims to "maximize income and reduce expenses."

Total 2007 revenue increased 7.6% to EUR288.7 million. The carrier attributed the rise mainly to higher traffic and improved yield, though it did not reveal those figures. Expenses grew 3.6% to EUR282.8 million while operating profit was EUR5.4 million, which takes into account redundancy compensation of EUR500,000 paid as part of the restructuring plan's employment reduction initiative.