Cyprus has already paid €20.4 million for ferry service with Greece

The head of Scandro Holding Ltd, which operates the ferry service between Cyprus and Greece, has warned that 2027 could be the route’s final year of operation if the government does not extend the state subsidy. According to the company’s CEO, Charalambos Manoli, the initial goal — to create a self-sustaining route capable of operating without state support — has not been achieved. He believes that the main problem is low demand.

The ferry service operates from the end of May to the beginning of September; however, according to Manoli, demand remains low even during this period, with the vessels reaching full capacity only in August. Three months are not enough to generate the necessary revenue, while for the rest of the year the vessel is mostly idle because it cannot be used on other routes.

Changes to European requirements are creating an additional problem. Manoli noted that at the end of 2029, the ferries will lose their exemption from carbon dioxide emissions charges, which will lead to higher costs. He also cited rising fuel prices as an additional constraint. The Audit Office of Cyprus, however, takes a different view. Its latest report states that the state subsidy was higher than necessary and that the way it was provided created incentives for the company that did not contribute to the development of the route.

In particular, the Audit Office pointed out that the state-guaranteed compensation for unsold tickets had the opposite of the intended effect. There were also cases when tickets were unavailable for purchase even though the vessel was only 69% full. The booking system was also criticised. For example, a passenger travelling alone can book a four-berth cabin for less than a single cabin. In addition, cancelling a ticket does not incur a penalty.

According to the Audit Office, the state subsidy covers around 93% of the costs and could have been lower. The company receives €5.47 million in annual compensation, as well as 6% of ticket-sale revenues.

Since the route was launched in 2022, the European Commission has approved state aid for a period of three years. The programme was later extended for another three years — until 2027. From 2028, the ferry service is expected to operate independently, covering its costs through ticket sales and other company revenues.

Between 2022 and 2025, the state paid the company a total of €20.4 million:

— 2022 — €5 208 952.76
— 2023 — €5 211 755.35
— 2024 — €4 847 054.78
— 2025 — €5 171 317.62