Cyprus airport traffic tumbles in March as Iran war hits

Airport operator Hermes Airports on Tuesday reported a 15.3 per cent decline in air passenger traffic at Cyprus airports, reflecting the impact of the Middle East crisis on tourism flows.

According to the company, passenger traffic fell to 599,200 travellers in March 2026, compared with 707,200 in March 2025.

The sharp drop marks a reversal from the consecutive record-breaking performance recorded in previous months.

At Larnaca Airport, passenger traffic decreased to 415,700 from 501,600 a year earlier, representing a 17.1 per cent decline.

At Paphos Airport, traffic dropped to 183,500 from 205,600, reflecting a 10.7 per cent decrease.

During the first quarter of 2026, total air passenger traffic reached 1.8 million travellers.

Of this total, the company reported, approximately 1.3 million passengers travelled through Larnaca Airport.

A further 537,300 passengers were recorded at Paphos Airport over the same period.

The decline has been attributed to the war in Iran and the resulting Middle East crisis, which has significantly affected the flow of tourists to Cyprus.

The downturn comes after a strong start to the year, with January and February having recorded record-breaking traffic levels.

Industry leaders have pointed to a shift in traveller psychology, with safety concerns now playing a decisive role in booking behaviour.

The ongoing war in the Gulf region has led to a slowdown in bookings and an increase in cancellations, particularly for March and April. Indeed, flights to Qatar have ceased as a result of the regional instability.

However, European routes have remained largely unaffected and continue to operate normally.

Stakeholders in the tourism sector have identified May 2026 as a critical turning point for the industry.

If demand does not normalise by then, they said, it is expected that recovering lost occupancy for the 2026 tourism season will be difficult.

In response to the downturn, the government introduced a support scheme last week.

The scheme provides for a 30 per cent payroll subsidy for hotels with occupancy below 60 per cent or experiencing a 40 per cent drop in revenue.