Cypriot low-cost carrier Cobalt Air announced it was cancelling all flights from Thursday after just two years in operation, leaving passengers stranded and scrambling to get their money back.

The airline warned customers its offices would no longer be staffed and urged them to seek refunds through their travel agent or credit card company.

In a brief announcement issued on its website without prior warning late on Wednesday, the airline said it was cancelling all flights from 23:50 pm (2050 GMT) "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," it added without elaborating on the reasons.

The airline advised passengers who have tickets not to go to the Mediterranean holiday island's main airport at Larnaca on Thursday or attempt to contact its offices "as no Cobalt flights will operate and no Cobalt staff will be present".

"For refunds, please contact your credit card provider or travel agent," its statement said.

"We sincerely apologise once again and would like to thank our very loyal customers for their support over the last two years of Cobalt operations."

Cobalt, the largest Cypriot airline since the collapse of the state-owned flag carrier, ceased operations after reports that it had failed to reach a deal with a potential European investor.

It is not yet clear how many passengers have been affected by the sudden shutdown.

But the Cypriot transport ministry said passengers expecting to fly with Cobalt on Thursday should secure one-way tickets in economy class from another airline and keep their receipt to be reimbursed.

Nine flights had been scheduled to arrive and nine to depart from Larnaca airport on Thursday.

Transport Minister Vasiliki Anastasiadou said that any stranded passengers in Cyprus would be helped.

Reportedly, the company has only 15 million euros in its accounts, which it needed to pay its 200 staff.

There was speculation that the budget airline was facing cash flow problems after two of its aircraft were grounded for two days.

Although Cobalt refused to comment on the rumours, sources within the company reportedly attributed the liquidity problems to difficulties faced by Chinese investors in exporting capital due to Chinese government restrictions.

The airline's largest shareholder is AJ Cyprus, with 49 per cent of the shares. AJ Cyprus is owned by China's AVIC Joy Air.

Cobalt stepped in to replace bankrupt state-owned Cyprus Airways, which shut down in January 2015.

Cobalt started flight operations in 2016 and acquired six aircraft -- two Airbus 319s and four Airbus 320s –- flying to 23 destinations.

Cypriot low-cost carrier Cobalt Air announced it was cancelling all flights from Thursday after just two years in operation, leaving passengers stranded and scrambling to get their money back.

Cypriot low-cost carrier Cobalt Air announced it was cancelling all flights from Thursday after just two years in operation, leaving passengers stranded and scrambling to get their money back. The airline warned customers its offices would no longer be staffed and urged them to seek refunds through their travel agent or credit card company. In a brief announcement issued on its website without prior warning late on Wednesday, the airline said it was cancelling all flights from 23:50 pm (2050 GMT) "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," it added without elaborating on the reasons. The airline advised passengers who have tickets not to go to the Mediterranean holiday island's main airport at Larnaca on Thursday or attempt to contact its offices "as no Cobalt flights will operate and no Cobalt staff will be present". "For refunds, please contact your credit card provider or travel agent," its statement said. "We sincerely apologise once again and would like to thank our very loyal customers for their support over the last two years of Cobalt operations." Cobalt, the largest Cypriot airline since the collapse of the state-owned flag carrier, ceased operations after reports that it had failed to reach a deal with a potential European investor. It is not yet clear how many passengers have been affected by the sudden shutdown. But the Cypriot transport ministry said passengers expecting to fly with Cobalt on Thursday should secure one-way tickets in economy class from another airline and keep their receipt to be reimbursed. Nine flights had been scheduled to arrive and nine to depart from Larnaca airport on Thursday. Transport Minister Vasiliki Anastasiadou said that any stranded passengers in Cyprus would be helped. Reportedly, the company has only 15 million euros in its accounts, which it needed to pay its 200 staff. There was speculation that the budget airline was facing cash flow problems after two of its aircraft were grounded for two days. Although Cobalt refused to comment on the rumours, sources within the company reportedly attributed the liquidity problems to difficulties faced by Chinese investors in exporting capital due to Chinese government restrictions. The airline's largest shareholder is AJ Cyprus, with 49 per cent of the shares. AJ Cyprus is owned by China's AVIC Joy Air. Cobalt stepped in to replace bankrupt state-owned Cyprus Airways, which shut down in January 2015. Cobalt started flight operations in 2016 and acquired six aircraft -- two Airbus 319s and four Airbus 320s –- flying to 23 destinations.

Low-cost Cypriot airline Cobalt Air goes bust; passengers stranded

Cypriot leaders are close to reaching a deal on unifying the island but key issues remain unsolved, including implementing and guaranteeing a final pact, the new UN chief said Thursday.&nbsp;

&quot;We are coming very close to what is the settlement,&quot; Antonio Guterres told reporters in Geneva after opening a first-of-its-kind conference on ending four decades of stalemate in the eastern Mediterranean island.&nbsp;

The UN-backed peace process is aimed at creating a unified state, with Greek Cypriot and Turkish Cypriot zones.

Greek Cypriot President Nicos Anastasiades and Turkish Cypriot leader Mustafa Akinci have during bilateral talks tackled tough domestic issues like land swaps and the make up of a prospective future government.&nbsp;

While Guterres said major progress had been made on resolving those questions, there were obstacles ahead on how to &quot;implement&quot; a deal and developing &quot;instruments&quot; to preserve it.&nbsp;

&quot;You cannot expect miracles of immediate solutions, we are not looking for a quick fix,&quot; he said on his first foreign trip since taking over the UN&#39;s top job on January 1. &nbsp;

&quot;We are looking for a solid sustainable solution for the Republic of&nbsp;Cyprus,&quot; he added.

Thursday&#39;s conference included top diplomats from&nbsp;Cyprus&#39;&nbsp;so-called guarantor powers: Greece, Turkey, and former colonial ruler Britain.&nbsp;

Under a 1959 agreement, those nations have the right to intervene to protect&nbsp;Cyprus&#39;s sovereign integrity.&nbsp;

Ankara used that pact to justify its 1974 invasion that divided the island, which came in response to an Athens-inspired coup seeking union with Greece.&nbsp;

Britain and Greece have said they are willing to do away with the guarantor power arrangement, but Turkey on Thursday made clear that it expects some form of the deal to be preserved.&nbsp;

The goal, Guterres said, was to find a new system that &quot;guarantees the security concerns&quot; of both the Greek Cypriot and Turkish Cypriot communities.

&quot;We are at a starting point&quot; on the question of security, he said.

&quot;My hope is there will be a breakthrough&quot;, he continued, adding that&nbsp;Cyprus&nbsp;can be &quot;a symbol of hope.&quot;

(AFP)

The island country is currently split between Greek- and Turkish-Cypriot communities following the 1974 skirmish

Cypriot leaders are close to reaching a deal on unifying the island but key issues remain unsolved, including implementing and guaranteeing a final pact, the new UN chief said Thursday. "We are coming very close to what is the settlement," Antonio Guterres told reporters in Geneva after opening a first-of-its-kind conference on ending four decades of stalemate in the eastern Mediterranean island. The UN-backed peace process is aimed at creating a unified state, with Greek Cypriot and Turkish Cypriot zones. Greek Cypriot President Nicos Anastasiades and Turkish Cypriot leader Mustafa Akinci have during bilateral talks tackled tough domestic issues like land swaps and the make up of a prospective future government. While Guterres said major progress had been made on resolving those questions, there were obstacles ahead on how to "implement" a deal and developing "instruments" to preserve it. "You cannot expect miracles of immediate solutions, we are not looking for a quick fix," he said on his first foreign trip since taking over the UN's top job on January 1. "We are looking for a solid sustainable solution for the Republic of Cyprus," he added. Thursday's conference included top diplomats from Cyprus' so-called guarantor powers: Greece, Turkey, and former colonial ruler Britain. Under a 1959 agreement, those nations have the right to intervene to protect Cyprus's sovereign integrity. Ankara used that pact to justify its 1974 invasion that divided the island, which came in response to an Athens-inspired coup seeking union with Greece. Britain and Greece have said they are willing to do away with the guarantor power arrangement, but Turkey on Thursday made clear that it expects some form of the deal to be preserved. The goal, Guterres said, was to find a new system that "guarantees the security concerns" of both the Greek Cypriot and Turkish Cypriot communities. "We are at a starting point" on the question of security, he said. "My hope is there will be a breakthrough", he continued, adding that Cyprus can be "a symbol of hope." (AFP)

Cyprus unification deal 'very close' but UN warns of no 'quick fix'

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