The Polish state through the Polish Development Fund (PFR), the assembly of financial and credit lines to support LOT Polish Airlines will participate in their rescue, Prime Minister Mateusz Morawiecki announced. He stressed that LOT’s current difficult situation was caused by the coronavirus pandemic.
“The aviation sector has been severely hit by this crisis. In fact, it is one of the sectors of the national economy that have suffered greatly […] from the pandemic,” Morawiecki said at a press conference.
“All areas related to aviation are now subject to a special analysis here and the Ministry of State Assets is in direct contact with the management of PLL LOT. For my part, I can add that the Polish state through the Polish Development Fund, assembly of financial and credit lines for support for LOT will participate in the rescue of these airlines “- he stressed.
In December last year, the European Commission (EC) and the Council of Ministers approved an aid package for LOT Polish Airlines (LOT Polish Airlines) in the amount of PLN 2.9 billion. It consists of a loan of PLN 1.8 billion and an increase in share capital by PLN 1.1 billion. Such financing conditions were possible thanks to the good condition of LOT before the pandemic.
Before the pandemic, LOT was a profitable enterprise generating profits every year. Since 2016, it has doubled the scale of its operations, expanded its fleet from 45 to 80 aircraft and launched 80 new connections. In 2019, it carried a record 10 million passengers on board its aircraft.
LOT Polish Airlines had over 10 million passengers in 2019. Sales revenues in 2019 increased by over PLN 1 billion y / y to PLN 7.37 billion. The sole shareholder of PLL LOT is the Polish Aviation Group.
Source: ISBnews
