Cypriot airline Cobalt suspended operations

The low-cost airline Cobalt has canceled all flights from midnight Wednesday, according to a statement posted on its website.

The carrier, which operates flights to and from Cyprus since 2016 – including the transportation of British holidaymakers to the island – has suspended operations.

Local media said Cobalt had failed to reach an agreement with a potential new investor.

The Cyprus Mail said that the main support of the airline was the Chinese company Avic Joy Air.

The airline's statement said future flights would not work due to "the indefinite suspension of Cobalt operations", and advised passengers not to go to the airport.

Instead, they should contact their credit card provider or travel agent, the statement added.

It is unclear how many passengers were affected, but nine flights were due to arrive and nine from Larnaca airport on Thursday.

It has served 23 destinations in Europe including Heathrow, Stansted, Gatwick and Manchester in the UK, as well as in Russia and the Middle East.

Passengers reacted with concern on Twitter.

Cypriot Minister of Transport Vassiliki Anastassiadou said the government would pay the tickets to help travelers find their starting point, but said it would only cover return tickets.

She added that phone numbers would soon be announced to help stranded passengers in Cyprus or abroad.

The fate of the 200 Cobalt employees is not clear.

Last year, Cobalt said it carried 740,000 passengers during its first 16 months of business. By contrast, the largest European airline, Lufthansa, carried around 130 million people last year.

Before 2016, short-haul flights from Cyprus were dominated by Cyprus Airways, controlled by the state. But it collapsed, leaving room for the new operator.

Danish budget carrier Primera Air ceased operations earlier this month after 14 years of activity.