Profit Warning

Cyprus Airways Public Ltd (the “Company”) informs investors that the loss for the first six monthly period of 2011 is expected to be slightly higher than that of the comparative period of last year. This can mainly be attributed to the continuing financial crisis and to the further significant increase in fuel prices.

The results of the first six monthly period of 2011 include the non-recurring benefit which arose from the exchange of slots at London Heathrow airport between the Company and Virgin Atlantic Airways as well as the profit from the sale of one A320-200 aircraft and one aircraft engine. They also include the non-recurring cost of redundancy compensation relating to employees who left the Company’s employment in the first six monthly period of 2011 following the implementation of the Redundancy Scheme.