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: 