Volvo Profit Falls To 1.6B Crowns As Sales Drop 11%

Volvo Cars, part of Geely Holding, reported first-quarter results showing a decline in operating profit that was less pronounced than expected, even as sales fell by 11%. The results reflect the company’s cost management efforts alongside external pressures, particularly in the United States.

Operating Profit And Strategic Cost Management

Operating profit declined to 1.6 billion Swedish crowns from 1.9 billion crowns a year earlier, as sales fell by 11%, with a gross margin of 18.5% helping limit the impact. Håkan Samuelsson, Chief Executive Officer, said the company faced a challenging environment, adding that cost measures helped maintain profitability despite lower volumes. Analysts at Handelsbanken, Bernstein, and J.P. Morgan noted that the decline was less severe than expected, compared with consensus estimates of 900 to 950 million crowns.

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US Market Challenges And Policy Impacts

At the same time, the United States proved more challenging than expected. The removal of a $7,500 tax credit, which had supported demand for plug-in and electric vehicles, added pressure alongside higher costs related to tariffs and currency movements. Samuelsson said, “We are not satisfied with our results, but despite a volume drop coming from external factors we are more or less flat in profitability,” indicating that external conditions had a greater impact than internal operations.

Looking Ahead: A Focus On Growth

Volvo expects to support sales growth in the second half of the year. This includes the ramp-up of its new electric EX60, alongside efforts to maintain market share in the European premium segment. The company is also focusing on balancing cost control with ongoing investment, as it navigates geopolitical developments and changing policy conditions.

Conclusion

The results show how cost measures and external factors are shaping performance across markets. They also point to adjustments in product strategy and investment as the company responds to evolving demand conditions.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

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