Polish carrier Lot moves out of the red

Polish carrier Lot returned to the black by posting a net profit for 2013 just a year after being bailed out by the government.

The 26 million zlotys ($8.6 million) profit marked the airline’s first year out of the red since 2008 and followed a restructuring and the updating of its fleet with five Boeing 787 Dreamliners.

The restructure was launched by chief executive Sebastian Mikosz, who took over after a management shake-up following a 400 million zlotys government bailout.

Lot cut back its network so as not to fall foul of EU competition regulations following the bailout.

As a result, it flew 4.6 million passengers last year, 5% less than in 2012 – a year in which the airline posted a 400 million zlotys net loss.

Mikosz has said he wants to stabilise the airline and prepare it for sale.

However, European carriers have shown little interest in Lot, and EU regulations barring foreign carriers from controlling a majority of a European airline has limited foreign interest, the Financial Times reported.

Lot expects to post an operating profit of 70 million zlotys this year, up from an operating loss of 4 million zlotys in 2012.

Sourced from Travel Weekly

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