Hermes Airports' fixed strategic goal is the further development of Cyprus' connectivity and consequently passenger traffic, emphasises the company's CEO, Eleni Kaloyirou, noting that thanks to the long-standing efforts and constructive cooperation with the competent bodies, Cyprus' connectivity is recording remarkable momentum.
In an interview with InBusinessNews, as part of the IN Business Forecasting 2026 series of interviews, Kaloyirou analyses Hermes' plans and development strategy, making - among other things - special reference to the ongoing development projects at Larnaca and Paphos airports.
As she specifically states, 2026 will be important for the course of construction work, as they enter their basic stage, before entering the final stretch for their completion in the third quarter of 2027.
At the same time, she states that "beyond statistics and numbers, what has real value for us is offering a high level of service and a unique experience for every passenger who passes through the airport gates", while also announcing new innovations and upgrades, so that passengers can enjoy an even higher quality and comprehensive experience every time they travel through Cypriot airports.
At the same time, the CEO of Hermes Airports expresses the certainty that Cyprus has much to offer as a year-round destination, underlining that "it is within our capabilities to achieve this through the cooperation of all those involved."
In this regard, he characterises the increase in passenger traffic during the winter season as a great challenge.
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
In 2026, we expect the Cypriot economy to continue the positive course it has recorded in recent years, despite the significant successive challenges that arise, maintaining the growth rate close to 3% and with a further reduction in inflation.
Our country has demonstrated strong resilience over time, which is also recorded in the upgrades of international credit rating agencies, steadily achieving the gradual reduction of public debt, maintaining the growth momentum of our economy and continuing to attract significant investments.
This picture is supported by both the improved position of the banking system, which is attracting increased interest from foreign investors, and stable fiscal management. Particularly important in the development of the economy is the contribution of tourism, which has been continuously reaching new heights in recent years.
Indicatively, this year more than 13.7 million passengers will travel to and from Larnaca and Paphos airports for the first time, which is mainly due to the gradual lengthening of the tourist season from March to November, including months that were previously considered non-peak.
Now, more than 25% of passenger traffic is recorded during the winter season, with significant benefits for the entire tourism service chain, which has been called upon to deal with seasonality over time.
Taking into account the conditions imposed by climate change, it is important to invest steadily in the prospect of a year-round sustainable tourist destination.
At the same time, the geopolitical changes and conflicts we have been experiencing in recent years often cause unpredictable pressures on the entire economic structure, which is called upon to adapt each time.
A potential worsening of geopolitical impacts may directly affect individual sectors of the Cypriot economy or even indirectly, if the economic performance of Cyprus's main trading partners is adversely affected.
It is important that the government continues to support economic activity, growth and employment with flexibility, self-restraint and the greatest possible foresight, while expanding the scope of reforms in areas that will make our country an even more attractive investment destination, such as the speed of judicial procedures, the simplification of procedures and the digitalisation of the state.
In order to achieve further economic growth, it is very important to keep the business environment in which we operate stable and predictable, so as to provide the necessary certainty for new investments that will lead to increased economic activity.
How do you anticipate that your company's sector of activity will develop in 2026, what are the biggest trends/changes you expect to occur and what are the most significant challenges?
In early December 2025 alone, passenger traffic surpassed 13 million for the first time, a truly impressive number. Considering where we were just five years ago, in the midst of a pandemic, this is an extraordinary achievement due to the methodical, targeted strategy we implement as an airport management company to expand both the tourist season and the mix of visitors to Cyprus, through our long-standing and mutually beneficial close cooperation with tourism stakeholders.
Cyprus has much to offer as a year-round destination and it is within our capabilities to achieve this through the cooperation of all stakeholders. This will bring substantial advantages in the utilisation of our infrastructure, in the employment of personnel and in the attraction of investments.
Barring a shocking unexpected event, we anticipate that this trend will increase further in the new year and will bring even greater passenger traffic to Cypriot airports.
The biggest challenge, which for us constitutes a strategic goal that we are gradually approaching, is the increase in traffic during the winter season.
As Hermes Airports, we have undertaken important initiatives to achieve this goal, bringing to the same table not only local stakeholders, but also leading experts from abroad in order to inspire us with their example.
We are pleased to see the industry responding positively to our call, for example, by increasing the availability of beds over an ever-increasing time frame.
However, taking into account the growing trend, especially among younger travelers, to seek out experiences during their travels, much still needs to be done to highlight all the virtues that make Cyprus an attractive destination all year round.
The Second Phase of our airport development, which has been underway since March 2025, simultaneously at Larnaca and Paphos airports, and which we will deliver within the predetermined timelines, will give us greater flexibility and capabilities to serve even better the increasing number of passengers passing through our airports daily.
As we all know, tourism, not only in Cyprus, but also internationally, remains vulnerable to emerging developments, such as geopolitical unrest in the wider region, energy challenges, but also climate change, which causes additional pressure for sustainable development policies in Europe, with the risk, however, of European economies becoming less competitive if these policies are not followed similarly and at the same pace in the rest of the world.
What can we expect in terms of your organisation's development and expansion plans and strategy in 2026? What moves do you intend to make in this direction?
As we have mentioned above, the most crucial project we are currently running is undoubtedly the Second Phase of the development of Larnaca and Paphos airports, which began last March and is in full swing.
Already at the airport in Larnaca, the new wing being constructed to relocate the passport control and security areas has taken shape and one can get an idea of how the airport will look once the works are complete.
In Paphos, projects are also progressing at a rapid pace with the aim of expanding the terminal building and the southern parallel taxiway, taking advantage of the correspondingly reduced traffic during the winter months.
The smooth implementation of projects without affecting the operational operation of the airports is a daily challenge for our team, however, with appropriate planning and the necessary arrangements, the projects are progressing at a very satisfactory pace.
2026 will be important for the course of construction work, as it is now entering its basic stage, before we enter the final stretch for its completion, in the third quarter of 2027.
Despite the challenges, we are very excited about this process, knowing that we will deliver two airports that will be able to effectively respond to the needs of the new era, with all the benefits this entails for tourism and the Cypriot economy more broadly.
At the same time, our fixed strategic goal is the further development of Cyprus' connectivity and consequently of passenger traffic. Thanks to the long-standing efforts of Hermes Airports and the constructive cooperation with the competent bodies, the connectivity of our country records a remarkable dynamic: today Cyprus is connected by air with 41 countries through 160 routes operated by 60 airlines.
This led to the recent milestone of 13 million total passengers recorded for the first time at the two airports in Cyprus. However, we continue with our strategy to cover even more important destinations, within and outside Europe, with a particular focus on maintaining and strengthening the flight schedule during the winter months.
Beyond statistics and numbers, what has real value for us is offering a high level of service and a unique experience to every passenger who passes through the gates of our airports.
A traveller is not just looking for a means to reach his destination, but a complete and enjoyable experience. At Hermes Airports, this experience is at the core of our philosophy. Serving passengers is not just a process but a commitment that we uphold daily, with respect, care and true dedication.
In 2026, we will continue to strengthen this culture of service, advancing new innovations and upgrades, so that our passengers enjoy an even higher quality and comprehensive experience every time they travel through our airports.
The new year is seeing the implementation of the tax reform, which is taking place 22 years after the previous tax reform. How do you estimate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
I have not studied the provisions of the tax reform and so I cannot express an opinion on how it will affect us.
But modernising the tax framework and any legislative framework to reflect the realities of the modern era is a useful reform that I hope will improve the competitiveness of our economy.
It is important within the framework of the reform to maintain continuity and stability that will help the further development of the economy.
(Source: InBusinessNews)
