Cyprus Airways posted a modest rise in profits in 2008, when it further streamlined costs, but declined to give a forecast for 2009.

Net profit at the majority state-owned airline rose to EUR1.7 million euros (USD$2.1 million) and it said it had embarked on a drive to boost productivity with closer monitoring of expenses.

"Maintaining profitability for a second consecutive year amid an unprecedented economic crisis is an achievement in itself," said executive chairman Kikis Lazarides, adding that it was impossible to give profit guidance for 2009.

Cyprus Airways underwent restructuring in 2006, shedding about one fifth of its work force, with those remaining taking pay cuts.