Cyprus Airports Register 16% Traffic Growth Amid Strategic Connectivity Initiatives

by THEFUTURE.TEAM

February 18, 2026

Air Traffic And Connectivity Surge

Hermes Airports has reported a significant 16% rise in air traffic at both Larnaca and Paphos airports during the November-January period compared to the previous year. Maria Kouroupi, Director of Aviation Development, Marketing, and Communication at Hermes Airports, attributes this upward trend to coordinated efforts across the tourism sector and strategic agreements with key airlines to sustain year-round routes.

Expanding Global Routes And New Markets

During the winter season, Larnaca Airport served 30 airlines operating flights to 54 destinations in 33 countries. The network expanded to include new markets such as Spain, Belgium, Slovakia and North Macedonia. Ten destinations, including Barcelona, Brussels, Bratislava, Skopje, Venice, Heraklion, Timisoara, Suceava, Cluj and Gyumri, were added for the first time.

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Paphos Airport maintained services from eight airlines connecting 35 destinations across 17 countries. The Paphos–Amman route resumed operations, while new flights to Düsseldorf and Haifa were introduced.

Geopolitical Considerations And Crisis Response

Kouroupi noted that while the tourism sector remains sensitive to geopolitical developments, particularly tensions in the Middle East, there is currently no direct impact on Cyprus’ air traffic volumes. Airlines may still modify routes to avoid unstable airspace, which can extend flight times or require refueling stops. Cyprus airports have also continued to support regional repatriation efforts during crises through additional flights and coordinated logistics.

Collaborative Connectivity And Strategic Marketing

Hermes Airports has pursued a long-term connectivity strategy in partnership with government and tourism authorities, aligning promotional initiatives and joint marketing campaigns. Participation in major aviation conferences and international tourism exhibitions has reinforced this coordinated approach. Industry collaboration over the past five years has contributed to faster decision-making and more effective crisis communication among stakeholders.

Infrastructure Investments And Expansion Developments

Hermes Airports is moving forward with infrastructure upgrades totaling €170 million under internally financed Phase B expansion plans. At Larnaca Airport, construction includes a new terminal wing, expanded boarding areas, increased baggage handling capacity and additional commercial space, with completion expected within 30 months. Paphos Airport is scheduled for a 30% terminal capacity increase along with taxiway improvements, targeted for completion in 27 months. Maintaining uninterrupted airport operations during construction remains a key operational focus supported by phased planning and passenger communication measures.

Conclusion

Amid shifting market conditions and external pressures, Cyprus’ airports continue to emphasize resilience and long-term planning. Expanded airline partnerships, diversified route networks and sustained infrastructure investment position the country to strengthen connectivity and support tourism growth in the years ahead.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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