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Cyprus Airports Propel Expansion With €170 Million Investment Amid Record Passenger Traffic

by THEFUTURE.TEAM

September 9, 2025

Record-Breaking Passenger Traffic

Cyprus’ airports have reached an unprecedented level of activity, with Larnaca and Paphos recording a combined 1.8 million passengers in August. This figure marks a notable increase from 1.6 million in the previous year and underscores a resilient rebound beyond pre-pandemic levels. Larnaca, in particular, observed growth from 1.2 million to 1.3 million passengers, while Paphos reported an increase from 439,900 to 501,100 passengers year-over-year.

Robust Expansion Programs Underway

Construction is now well underway on the second phase of a major expansion programme, endorsed by a €170 million investment. The initiative, which commenced in March, saw President Nikos Christodoulides laying the foundation stone in June. At Larnaca, the upgrade will encompass approximately 20,000 square metres, adding new arrival and departure gates, enhanced baggage handling, expanded passport control, advanced security checks, and enlarged commercial areas alongside increased aircraft parking capacity. Paphos is set to experience a terminal capacity boost of around 30 per cent, significantly refining passenger processing and overall efficiency. Operational enhancements also include the extension of the southern parallel taxiway, further elevating the airports’ flexibility and throughput. Once complete, Larnaca and Paphos will boast annual capacities of 12.4 million and 5 million passengers, respectively.

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Tourism Surge And Revenue Growth

The momentum extends beyond infrastructure. Recent statistics show that tourist arrivals in Cyprus escalated by 6.9 per cent in July 2025, with the UK, Israel, and Poland topping the list of source markets. Meanwhile, tourism revenue climbed by 9.6 per cent to reach €422.3 million in June 2025, with overall spending per visitor also rising. The first half of the year collectively generated €1.38 billion in revenue, marking a 21.3 per cent increase over the previous year. Such figures attest to the strong recovery and continuous expansion of Cyprus’ tourism sector, further supported by a record-breaking influx reflected in over 12.3 million passengers in 2024.

These developments not only highlight the strategic importance of airport expansions in meeting growing demand but also underscore Cyprus’ robust economic recovery and commitment to enhancing its infrastructure for sustainable growth.

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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.