Hermes Airports highlights €640 million airport investment

Hermes Airports this week marked 20 years since signing the concession agreement with the Republic of Cyprus for the management of the international airports of Larnaca and Paphos, highlighting the transformation of the country’s aviation and tourism sectors over the past two decades.

The agreement, described as the first and largest public-private partnership (PPP) in Cyprus, ushered in what the company called a new era for travel experience and Cypriot tourism, while also leaving a significant imprint on the wider economy.

Through the agreement, Cyprus gained two new state-of-the-art airports in Larnaca and Paphos, following investments exceeding €640 million, the operator stated.

The project was recognised internationally and received the “Best Transport Project in Europe” award from World Finance in 2013.

Hermes Airports stated that Cyprus significantly strengthened its international connectivity over the past two decades, despite a series of global aviation crises that affected the industry.

The operator further said that Cyprus is now connected to destinations across Europe and the wider Middle East, with improved year-round connectivity supporting the tourism sector and broader economic activity.

Passenger traffic through the two airports almost doubled during the concession period, increasing from 6.7 million passengers in 2006 to 13.7 million passengers in 2025.

According to the company, this growth helped establish tourism as a strategic pillar of the Cypriot economy, contributing approximately 14 per cent of gross domestic product.

Hermes Airports also said that Phase Two expansion works are currently progressing at both airports.

The projects involve an investment of €170 million, fully financed by the company, and are intended to significantly increase airport capacity in order to meet Cyprus’ long-term needs.

The operator said the upgrades are designed to respond to changing airline and passenger requirements, while further improving the travel experience.

Over the past 20 years, direct revenues paid to the Cypriot state through concession fees exceeded €715 million, according to the company.

Hermes Airports added that the total direct and indirect contribution of airport operations to the national economy reached €789.4 million in 2025, with the aviation sector continuing to represent a major source of employment.

Chief executive officer Eleni Kaloyirou described the anniversary as “a particularly meaningful milestone”, saying it provided an opportunity to reflect on the company’s role as “a consistent and reliable partner to the state.”

“We have contributed decisively to the growth of the Cypriot economy and tourism, while effectively managing every crisis that emerged over time and turning challenges into opportunities for further development,” she said.

Kaloyirou also mentioned that Hermes Airports strengthened Cyprus’ year-round connectivity through targeted partnerships and strategic initiatives.

She also stated that the company’s activities support the wider business community and employment, while Hermes Airports itself has received distinctions recognising it as an employer of choice investing in its workforce and working environment.

“Guided by our experience and expertise, and with the challenge of completing the Phase Two projects on schedule, we continue with even greater determination to strengthen the prospects and momentum of our country,” Kaloyirou said.