Cyprus Airways warns of full-year losses

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Cyprus Airways has issued a profit warning for its full-year results, stating that it will suffer losses for the period.

The airline says that its financial results for 2010 are "expected to be significantly more loss-making" compared with those of 2009.

Cyprus Airways says the deterioration in its results is due to the global financial crisis and an increase in competition.

"Despite the fact that the company managed to partially increase passenger traffic, it continues to be adversely affected in terms of yields, something which has significantly reduced the company's revenue," it states.

Cyprus Airways adds that its results have been hit by the effects of the Icelandic volcanic eruption in the first half of the year, as well as upheaval in Greece, higher fuel costs and the weakening of the euro.