The Cyprus Greece passenger ferry service is secured through 2027, but the government will decide next year whether to continue subsidising the route from 2028, deputy shipping ministry director Kyriakos Aliouris said on Saturday.

Aliouris informed the Cyprus News Agency that the existing contract, which began in 2022 and was initially agreed for three years with an option for a further three, has been extended until 2027.

“Until next summer, the contractor is obliged to provide the services based on the terms of the contract,” he said.

“There is no issue at the moment,” Aliouris assured. “Next year the line will be operating normally, that is, the sea connection between Greece and Cyprus.”

The assurance follows comments from Scandro Holding Ltd chief executive Charalambos Manoli that the service cannot continue without renewed state support.

Manoli has warned that 2027 could be its final year if passenger demand does not increase sufficiently to make the route financially sustainable.

The ferry operates seasonally from the end of May to early September.

Manoli said passenger numbers remain relatively low outside the peak summer period, with around 100 passengers per sailing in June and between 200 and 250 in July, while sailings are generally full only in August.

“You can’t run a sustainable line for three months,” Manoli said, arguing that the vessel would need to generate income during the remaining nine months of the year.

Aliouris said the government was aware of the operator’s concerns but stressed that the subsidy was introduced because there had initially been no reliable data on demand.

“There was no data at all about what was happening. We didn’t know if and how much people would use it,” he said.

Five years of operation have since provided the shipping ministry with data that will be assessed before any decision is made.

Aliouris said the ministry would submit a proposal to cabinet next year after the current operating period has ended.

“So at this moment it is both premature and risky to say anything, whether it is stopping or continuing,” he said. “No decision has been made.”

Passenger traffic has increased year on year, according to Aliouris, who said “people have embraced the line”.

The service also has a social dimension, he said, serving passengers who are unable to fly, people with health concerns and travellers wishing to take pets or vehicles to Greece.

Manoli said bookings in 2026 were around 8,900 passengers, 2,700 vehicles and 371 pets, compared with 8,238 passengers, 2,660 vehicles and 379 pets in 2025.

The route’s future will also depend on operating costs, as Manoli has warned of higher fuel costs and the future impact of EU carbon emissions charges, while Aliouris said any new subsidy would have to reflect fuel prices and regional conditions at the time.

The final sailing of the current season is scheduled for September 1 from the port of Piraeus.