Nicosia – Cyprus-based Cobalt Air, ceased all operations on Wednesday at midnight and entered into administration, after 2 years and 3 months of operations.

Cyprus’ Air Transport Licensing Authority (ATLA) decided to revoke Cobalt Air’s operating license, Alecos Michaelides, the Permanent Secretary of the Ministry of Transport, Communications and Works has said.

He noted that the company preferred its license to be suspended temporarily, but “there was no reason to do so.”

Michaelides went on to say that company accounts show that Cobalt recorded annually €30 ml losses in the past three years. Chinese investors are estimated to have put €100ml, however losses continued unabated, the permanent secretary added.

In a three-paragraph press release the airline said: “Cobalt regrets to announce that it will be cancelling all Flights as of 23:50pm on October 17, 2018 due to indefinite suspension of Cobalt’s operations. As a result, future flights or services provided by Cobalt will be cancelled and will no longer operate.”

The press release added: “For refunds, please contact your credit card provider or Travel Agent.”

Several airliners announced the next day that they were offering special fares to accommodate stranded passengers scrambling to find alternative flights to reach their destinations.

At the same time, the Cyprus government said it will compensate Cobalt Air ticket holders who fly to and from the island on other carriers.

In a statement, the Cyprus Ministry of Transport said passengers would be compensated for one-way, economy class tickets on other carriers up until October 24.