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New Record In Passenger Traffic

Cyprus has achieved a remarkable milestone in its aviation sector, with a record-breaking 6.6 million passengers travelling to and from the island between January and July 2024. This unprecedented surge in passenger traffic underscores the island’s growing appeal as a tourist destination and a critical hub in the Eastern Mediterranean.

Hermes Airports, the operator of Larnaka and Paphos airports, reported that passenger numbers have significantly rebounded, even surpassing pre-pandemic levels. The June 2023 figures alone showed a 105% increase compared to the same period in 2022. This surge reflects not only a recovery from the pandemic’s impact but also the effectiveness of Cyprus’s strategic efforts to enhance its connectivity and tourism appeal. With over 55 airlines operating 156 routes to 38 countries, Cyprus has firmly positioned itself as a key player in regional travel.

July witnessed a further rise, with 1.5 million passengers recorded, marginally above the July 2022 figures. This growth trend is expected to continue in August, traditionally the peak travel month, which could see passenger traffic exceed 1.5 million. The anticipated figures for August indicate a strong finish for the summer season, reinforcing Cyprus’s position as a favoured destination.

Despite the year’s challenging start, marked by external factors such as geopolitical tensions and global economic uncertainties, the resilience of Cyprus’s tourism and aviation sectors is commendable. Maria Kouroupi, Hermes Airports’ Director of Aviation Development, highlighted the concerted efforts to stabilise and grow the sector, aiming to make 2024 a landmark year for Cyprus tourism.

For businesses and investors, these numbers signal robust growth potential in Cyprus’s tourism and related sectors. The increasing passenger traffic not only boosts the local economy but also opens up new opportunities for investment in infrastructure, services, and hospitality industries.

Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.

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