Limassol, Cyprus. The ferry connection between Cyprus and Greece cannot continue without renewed state subsidies, Scandro Holding Ltd chief executive Charalambos Manoli said on Friday. He said the service could end in 2027 unless passenger numbers improve.
Subsidy support
The route was launched in 2022 after the European Commission approved a three-year state subsidy, which was subsequently renewed for another three years.
Manoli told the Cyprus News Agency that the long-term objective of creating a financially self-sustaining service had not yet been achieved.
Seasonal demand
The ferry operates from the end of May until early September. Manoli said demand was lower than in Greece, where ships are widely used for travel between islands.
He said the service carries about 100 passengers per trip in June and between 200 and 250 in July, while the ship is only full in August.
AF Marina was due to depart Limassol on Saturday with 380 passengers, the highest number carried by the vessel this season, according to Manoli.
Operational constraints
Manoli said a line operating for only three months could not be sustainable, as the ship would need to be deployed elsewhere during the remaining nine months of the year.
He said the lack of flexibility to carry cargo or other items meant the service could not continue without support.
Future costs
If the ferry service continues to receive subsidies, further considerations will be needed, Manoli said.
Ferries are currently exempt from European Union carbon dioxide emission tariffs, but the exemption will end in late 2029. Manoli said emissions charges would then increase the level of state subsidy required.
