Cypriot budget airline Cobalt has suspended operations

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

The carrier, which has operated flights in and out of Cyprus since 2016 – including flying UK holiday-makers to the island – has suspended operations.

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

The Cyprus Mail said the airline’s main backer is China’s Avic Joy Air.

The airline’s statement said future flights would not operate due to “indefinite suspension of Cobalt’s operations”, and advised passengers not to go to the airport.

They should contact their credit card provider or travel agent instead, it added.

Cobalt flew to 23 destinations, including Heathrow, Stansted, Gatwick and Manchester, and had recently added a business class and frequent flyer programme.

It employs about 200 staff.

Cypriot transport minister Vassiliki Anastassiadou said alternative arrangements would be made for passengers booked with the airline.

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

Danish budget carrier Primera Air ceased trading earlier this month after 14 years of operation.