LOT narrows 2011 loss to $44.7 million; looks to profit in 2012

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Published: February 20, 2012

LOT Polish Airlines has posted a loss of PLN145.5 million ($ 44.7 million) for 2011, narrowed from a PLN163.1 million loss in 2010. LOT said the 2011 loss was mainly due to high fuel prices, lower fourth-quarter passenger traffic and a rapid increase in the dollar exchange rate at the end of the year.

LOT forecasted a PLN52.5 million profit for 2012.

“Excluding the effects of fuel price rises and exchange rate fluctuations LOT improved its financial result by PLN752 million over the past years,” CEO Marcin Pirog said. LOT carried 4.6 million scheduled passengers last year, up 9% compared to 2010. Load factors were similar to those in 2010, an average of 74% and exceeded 81% in the high summer season, the carrier said in a statement.

For 2012, LOT said it plans to increase the number of passengers carried by a further 9%, as well as earn a profit of PLN52.5 million on core activities, “which permits the company a more stable functioning and assumes the possibility, in the nearest future, of self-financing operations and fleet development.”

The carrier will relaunch 3X-weekly service to Beijing May 29.

“I would like to confirm that the 787 [will] fly in this year ( ATW Daily News, Oct. 20, 2011 ). The first two 787s are likely to arrive in November, the third in December. The next two [will arrive] at the turn of January-February 2013,” Pirog told the Polish Press Agency. He said the 787s are needed for growth. The company is 68% owned by the state.

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