Tag Archives: LOT Polish Airlines

LOT Polish Airlines produces its first profit in seven years

LOT Polish Airlines (Warsaw) is back in the black, producing its first profit in seven years. The airline issued this statement:

LOT ended 2014 in the black. With more than PLN 99 million ($26 million) profit on its core business of flying, LOT earned 40 percent more than it planned. This is the company’s first profit in seven years.

LOT was supposed to end 2014 with PLN 70 million ($19 million) profit on its core business but it is almost 30 million ($8 million) above the Restructuring Plan assumptions and 103 million ($27 million) more than in 2013.

“The company is steadily improving its situation, stabilizing its financial condition and getting ready for rapid growth in the next year,” said Sebastian Mikosz, CEO, LOT Polish Airlines. “The positive result on the core business, which is a key indicator of our company’s health, is of utmost importance since it has been achieved regardless of the compensation measures required by the European Commission.”

“Because of the public aid received, we had to cut the number of flights by almost eight percent in 2014, compared to the previous year. Nevertheless, we carried two percent more passengers and increased the revenue in comparison with 2013, while keeping a similar cost level,” continued Mikosz.

The company owes its positive results to consistent changes and initiatives included in the Restructuring Plan. Most of them were added as early as in 2013, but 2014 was the first full year to have seen the results. LOT continues to modernize and expand its sales channels, including mobile solutions. The quality of service is gradually improving. New products are being added to address new passenger groups in the market.

The new philosophy of building a network has also paid off. LOT has increased its connecting capacities by as much as over 40 percent in its Warsaw hub. Such connecting options are among the reasons why LOT has become the first choice for a constantly growing number of passengers from Poland as well as the entire Eastern and Central Europe region.

2014 was also the first year to have seen the Dreamliner effect since it was only in the entire past year that all long-haul flights were operated exclusively with these aircraft. The Boeing 787 Dreamliner is not only popular among passengers but provides tangible benefits, such as fuel savings. LOT currently operates six Dreamliners on its schedule network, leases them to other airlines and operates long-haul charter flights in the winter season. An efficient use of the Dreamliner fleet is included in the Restructuring Plan.

“The results in 2014 show we can operate effectively in this very competitive market, and there is a place for such a carrier as LOT,” added Mikosz. “However, we have to remember that this is just the first step of transformation and more challenges are ahead. This year, we are bound to repeat the financial success, as it is our goal to achieve sustained profitability and to move from restructuring to a rapid growth of the company.”

LOT has also improved other indicators. The EBITDA — indicator of company performance which determines the cash flow generating ability — also improved. EBITDA in 2014, is PLN 291 million ($77 million), compared to 2013 PLN 156 million ($41 million) and 2012 a minus PLN 346 million ($91 million).

The normalized net profit, i.e. without one-offs and accounting effects, is also positive and amounts nearly to PLN 36 million ($9.5 million). Taking into account the one-offs and accounting effects, related to the increase of currency exchanging rates (mainly of the dollar), a minus appears at the net result at the level of 263.4 million ($70 million). This is only an artificial accounting record having no effect on the actual financial health of the company. It is because the relationship between LOT’s earnings and spending in foreign currencies is fairly in balance. Therefore, no currency is in fact exchanged, but only the amounts are booked in PLN according to the valid standards. The net profit in the previous year amounted to PLN 26 million ($7 million). The normalized net profit in 2013 was a minus 67 million ($18 million).

Owing to the consistent improvement of its financial condition, LOT postponed and considerably reduced by as much as two thirds, the money it received from the second state aid tranche. At the end of 2014, LOT received PLN 127 million ($34 million.). It should be emphasized that the amount of state aid has no effect on the result.

The company’s growth policy for 2016 is underway. It will be announced in the next few months new short- and long-haul destinations. LOT will start flying on those routes at the beginning of the next year when the Restructuring Plan is formally ended.

Copyright Photo: SPA/AirlinersGallery.com. The airline attributes the turnaround to its game changing six Boeing 787-8 Dreamliners and its restructuring program as the main reasons for the change in fortunes.

LOT Polish Airlines aircraft slide show: AG Airline Slide Show

AG Need a certain aircraft?

KISSaLOT – LOT Polish Airlines hangs mistletoe in the highest place in the world

LOT Polish Airlines KISSaLOT

LOT Polish Airlines (Warsaw) has kicked off the Christmas holidays with KISSaLOT. Mistletoe twigs have been hung in each of LOT’s aircraft–the highest place in the world–through January 6, 2015. It’s the airline’s way of bringing people together.

The tradition of kissing under the mistletoe has only recently come to Poland, though it’s been known by its ancestors for centuries. Suspended from the ceiling or over the door, mistletoe is supposed to bring love, harmony and happiness in the coming year to its inhabitants. According to tradition, feuds and disputes cease under the mistletoe; friendships are more durable and people who meet there are allowed to kiss.

LOT operates flights this winter season to more than 40 cities around the world, including New York, Chicago, Toronto, Beijing, and charter destinations such as Cancun, Bangkok, Colombo, Krabi, Ho Chi Minh City, La Romana, Santa Clara, Varadero, Durban and to Zanzibar.

Photo: LOT Polish Airlines.

LOT aircraft slide show:

Video: LOT Polish Airlines. According to the airline (translated from Polish): “On this occasion, at Warsaw Chopin Airport, be prepared for an extraordinary surprise.”

 

LOT Polish Airlines returns to the black

LOT Polish Airlines (Warsaw) is enjoying a financial turnaround, especially with the help of its new Boeing 787-8 Dreamliners. The airline issued this statement:

LOT Polish Airlines has consistently improved its financial standing and is now in the black. At the end of August, the airline exceeded the cumulative breakeven point, thus making a profit on its core business of flying following years of losses. This is in line with the assumptions of the restructuring plan.

Sebastian Mikosz, CEO of LOT Polish Airlines said, “Compared to the corresponding period of 2013, we have attained a better result of PLN 100M ($30,934,000). LOT is seeking to achieve sustainable profitability and we have consistently pursued our goals to meet our annual financial forecast. According to the Restructuring Plan, approved by the European Commission, we are expected to achieve a return of approximately PLN 70M ($21,654,000) in 2014. Our improved effectiveness is marked in all aspects of our operations. Reaching the breakeven point is the exclusive success of the company’s activities. There are no market-specific factors, such as aviation fuel prices or currency exchange rates that helped us achieve these results, as was the case partially last year.”

LOT began to improve its financial results in 2013. Last year closed with a slight loss on the core business of PLN 4M ($1,237,360). This result was still better than assumed in the Restructuring Plan. Last year was also the first year of many in which LOT recorded a net profit. It amounted to PLN 26M ($8,042.840).

LOT continues to finance the difficult restructuring process exclusively with its own resources. By the end of September, the airline will not apply for the second tranche of public aid, which will be smaller than assumed.

LOT owes its positive results to continuous transitions. The carrier continues to improve the quality of services, launch new products, expand its portfolio and approach new passenger groups.

LOT has also increased its transit capacities by as much as 40%, meaning passengers travelling via Warsaw are able to change more comfortably on their way to other cities in Poland and destinations in Central and Eastern Europe.

2014 marks the first year of the “Dreamliner’s effect”. The first LOT Boeing 787 jets started flying in June with now all long-haul flights operated with Dreamliners since August. This aircraft is not only popular among the passengers, but brings tangible benefits, such as fuel savings.

In July 2014, the European Commission made a positive decision about LOT. The Restructuring Plan was approved and public aid was granted. The restructuring process of the company will end at the end of 2015. Until that time, LOT may not operate new flights. However, the first new flights are to be announced at the beginning of 2015.

Copyright Photo: TMK Photography/AirlinersGallery.com. The restructuring program and the new Boeing 787s are game changers for LOT. The 787s have also changed the way people think of the airline. Boeing 787-8 SP-LRC (msn 35940) arrives in Toronto (Pearson).

LOT Polish Airlines: AG Slide Show

LOT Polish Airlines fights back against low-cost rivals with new low fare groups

LOT Polish Airlines (Warsaw) is introducing new “Economy Plus” and “Economy Simple” fare groups to remain competitive against low-fare airlines. The airline just issued this statement:

In June LOT is introducing new Economy Plus class of service in short and medium haul aircraft and LOT Economy Simple tariffs providing discounts of up to 30 percent off normal economy fares.

Passengers traveling in LOT Economy Plus will enjoy a business product for an economy price. They will have a dedicated hotline number, check-in desk, priority baggage and boarding service as well as a dedicated bus when the aircraft cannot be accessed from a jet bridge at Warsaw airport. On board, these passengers will have a choice of meals, beverages and alcoholic drinks just as in business class. They will sit in the front of the aircraft and obtain more miles in the frequent flyer program than before. Premium Economy passengers traveling on long-haul flights will connect to flights in Europe in LOT’s Economy Plus Class.

LOT has also prepared a special, simple and low-cost tariff called LOT Economy Simple created for the short-haul passengers who want to decide for themselves what services to use and when the fare price is the lowest. Ticket prices are 30 percent lower than in standard economy class. With a LOT Economy Simple ticket, a passenger has the option for online or airport check-in and while on board, served a drink and a sweet snack plus score frequent-flyer miles.This tariff is mainly for leisure travellers traveling only with their cabin luggage.To check luggage, there will be charged PLN 60 ($20) extra.In normal economy class, checked luggage is still free.

A ticket in LOT Economy Simple starts at PLN 199 ($65).For example, flights to Brussels are 30 percent off PLN 439 ($144) in Economy Simple vs. PLN 638 ($210) in Economy; to London 29 percent off PLN 499 ($164) in Economy Simple vs. PLN 705 ($232) in Economy and to Paris 24 percent off PLN 449 ($148) in Economy Simple vs. PLN 458 ($151) in Economy.

These new developments are another step in implementing the Restructuring Plan.In the past year, the airline focused primarily on cutting costs, looking for savings and beginning to improve the quality of the product and service standards.

“We significantly improved our results in the past year, but cutting costs alone is not enough,” said Sebastian Mikosz, CEO LOT Polish Airlines. “To achieve sustainable profitability, LOT has to grow and take better care of its passengers, by expanding the portfolio, offering better comfort and a broader range of optional services.”

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) SP-LIE (msn 17000153) in the 1945 retrojet scheme taxies at Zurich.

LOT Polish Airlines: AG Slide Show

 

LOT Polish Airways names its sixth Boeing 787-8 “Franek” (Frank)

LOT Polish 787-8 SP-LRF (11)(Nose) %22Franek%22 (LT)(LR)

LOT Polish Airlines (Warsaw) on April 30 took delivery of its sixth new Boeing 787-8 Dreamliner, specifically the pictured 787-8 SP-LRF (msn 35942). The new 787 is named “Franek” which is Frank in Polish. The name was chosen as a result of an Internet contest. The airline issued this statement:

“Frank” (Franek in Polish) is the newest and sixth Dreamliner in the LOT Polish Airlines fleet that landed yesterday (May 1) at the Chopin Airport in Warsaw. The aircraft was named Frank as a result of an Internet contest. The name has been posted to the body of the aircraft and will appear until the end of the year.

“This year is special for us, full of changes and our Jubilee Year with our 85th anniversary,” said Barbara Pijanowska-Kuras, press officer for LOT Polish Airlines. “For our 6th Dreamliner delivery, we decided to organize a contest for the name of the aircraft numbered SP-LRF. The interest exceeded our wildest expectations. We are pleased this aircraft raises so many positive emotions.”

There was record interest in the Internet naming contest for the 6th LOT Dreamliner with 199,393 hits, 92,709 unique users and nearly 1,300 entries.

The Internet contest was held in March. The rules were simple–create an interesting name, justify your choice and become a “parent godfather” for this Dreamliner. Ms. Katarzyna Wąchała of Warsaw was the lucky winner. As a reward, she flew to visit the Boeing factory in Seattle. She returned to Poland today with her “baby”. She became the first long-distance passenger on the first flight of the youngest aircraft in the LOT fleet to Warsaw.

“The choice was difficult,” said Pijanowska-Kuras. “We wanted the name to arouse positive emotions, to be nice, short, easy to read and pronounce for foreigners, creative, intriguing and somewhat surprising. The choice was determined by the reasons given by the author. The registration number of this new aircraft is SP-LRF, so F is for Franek; F is also the 6th letter of the alphabet corresponding to LOT’s 6th Dreamliner; Franek in Polish is a timeless name; Franciszek is the name of two aces of the skies: Franciszek Peter and Franciszek Jacha and finally, it is also the name of Franciszek Zwirko – as Ms. Wachala wrote as her reasons for Franek.”

Franek will start to fly by mid-May on regular long haul connections in LOT’s network. The plane will be seen at airports in New York, Chicago, Toronto and Beijing. Beginning this winter season at the end of October, Franek may also visit other tourist places, such as Cuba, Sri Lanka, South Africa, Vietnam, Mexico or Thailand because LOT will begin long haul charter flights.

Since August 2103 when the fleet was joined by the fifth Boeing 787, LOT has been performing all long-haul flights only with Dreamliners. The Polish carrier was the first airline in Europe to operate this most modern world aircraft. Passengers appreciate the change in product quality and comfort of this machine. Given the company’s financial results and their year-to-year comparison in 2013, thanks to the Dreamliners, LOT gained as much as 95 million Zloty or $31,276,400. Business Class (Elite Club), perceived by passengers as the best on trans-Atlantic flights from Eastern Europe, has become increasingly popular. LOT has experienced huge success for its Premium Economy (Premium Club), between business and economy class. The Dreamliner also provides greater cargo business opportunities. LOT has also saved several million Zloty due to lower fuel consumption because from mid-2013, the long haul flights were flown by Dreamliners. At the end of 2017, the Polish carrier will have eight Dreamliners. The 7th Dreamliner will be delivered in the winter 2016/2017 and the 8th later during 2017.

The Dreamliner is a long-haul aircraft (12000 km) with a maximum cruising speed of 875 km / h, length of 57.72 m and a wingspan of 60.13 m. It has 252 passenger seats. The specially designed interior gives a feeling of spaciousness on board. Windows larger by ca 30% provide an excellent view, an appropriate pressure gives a greater sense of comfort, and the higher humidity as well as adequate filters ensure clean and healthy air. Luggage lockers are larger, and LED lighting system imitates daylight and adjusts to the time of the day. The special solution allows passengers to avoid turbulence and motion sickness.

Copyright Photo: LOT Polish Airlines.

LOT Polish Airlines: AG Slide Show

LOT Polish Airlines introduces a 1945 retrojet color scheme on Embraer 175 SP-LIE

LOT Polish ERJ 175 SP-LIE (45)(Grd)(LOT)(LR)

LOT Polish Airlines (Warsaw) has introduced an Embraer ERJ 170-200LR (ERJ 175) registered as SP-LIE (msn 17000153) in a 1945 retro paint scheme. This livery was used by company from 1945 through 1973.

According to LOT, “On the interior walls are mounted vintage photos and posters”.

Copyright Photo: LOT Polish Airlines.

Video:

LOT Polish Airlines: AG Slide Show