LOT holds off seeking extra financial support

This story is sourced from Pro
See more Pro news »

Polish flag-carrier LOT is postponing an application for additional financial support from the country's government, after evidence that its business performance is improving.

LOT received an initial tranche of support towards the end of last year and had been expecting a second in August as part of a restructuring programme.

But the airline says it did not seek the additional funding in August, nor will it apply in September. It states that it will only apply once it has "carefully assessed" the extent of any support needed.

"Perhaps this will happen only in October," says the carrier.

LOT claims that it has been able to hold off the demand for additional aid following "promising results" from its restructuring effort. Chief executive Sebastian Mikosz says the first-half result was better than predicted by around $9 million, and that subsequent months are also showing encouraging figures.

"The improved result is possible mainly due to sharp cost-cutting, while enhancing sales," he says.

Star Alliance member LOT, which is aiming for sustained profitability from 2015, is also redrawing its network as part of the overhaul. It is suspending its Rome, Zurich, Helsinki, Dusseldorf, Stuttgart and Bydgoszcz routes.

LOT says some of these routes have been dropped because they did not produce sufficient transfer traffic to long-haul flights. The airline is focusing on developing its Warsaw hub and will cut back services from other Polish airports.