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The Warsaw Voice » Business » April 3, 2014
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Poland’s national carrier LOT makes profit in 2013 for first time since 2008 
April 3, 2014   
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Poland’s flagship airline PLL LOT posted a profit for the first time since 2008, closing 2013 with a net profit of PLN 26 million and an operating result of minus PLN 4 million, CEO Sebastian Mikosz told a news conference on Wednesday

"For the first time since 2008 LOT recorded a net profit," Mikosz said.
"It reached PLN 26 million versus PLN 196 million loss written in the firm's restructuring plan submitted to the European Commission."

The 2013 result has already undergone audit, the CEO said.

The main reasons for this result are a consistently implemented transformation process in the company and the 'Dreamliner effect'.

On the operating level, the firm is approaching the break-even point, the official said.

"In this case we ended the year slightly in the red: PLN 4 million versus the planned loss of PLN 142 million," Mikosz said.

Considering the core business, a significant increase of cost effectiveness and raising the revenue contributed to the improvement towards the Restructuring Plan. Better results were also possible due to reduced administration cost, employment restructuring, fuel savings, reduced cost of ticket distribution and renegotiation of contracts with suppliers. LOT also managed the range of destinations more efficiently, expanded connection possibilities for passengers and improved flexibility of the tariffs offered. The carrier launched extra services and extended distribution channels, including mobile solutions.

The firm maintains its plan of posting a PLN 70 million operating profit in 2014, the firm said in a press statement.

Back in November 2012, LOT said the 2013 financial results would be better than expected in the Restructuring Plan. Today's presentation of detailed figures, following an audit, has been a pleasant surprise.

2014 plans include devising a new strategy for developing its destination network after the formal process of restructuring, i.e. beyond October 2015, as well as continuing efforts to find a strategic investor for the firm, the statement reads.

2014 challenges also include a maximum reduction of the second tranche of state aid to be drawn and securing a formal approval of the European Commission for the firm's restructuring plan, the statement reads.
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