LOT Back In The Black

At the end of August LOT Polish Airlines made a profit on its core operations for the first time after years of losses. The flag carrier exceeded its cumulative breakeven point during the past month, bringing it into operating profit. Sebastian Mikosz, CEO of LOT, said that change had been “exclusively” a result of the company’s efforts, such as by improving transit capacity and shifting to a more fuel-efficient 787 fleet. “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,” he said. In 2013, the airline posted its first net profit since 2007 after receiving a €100m ($129m) loan from the Polish government and beginning work on a restructure plan. The carrier could not convert this into an operating profit, however. In July, the European Commission approved LOT’s restructuring which will see it receive a further €200m ($259m) of state aid. The airline expects to post a total operating profit of around $22m for 2014.

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