LOT Achieves Fine Results

Results of LOT Polish Airlines after first six months this year are better than those in the previous year. In six months of 2000 LOT has transported 9.5% more passengers than in the same period last year. Transport has been boosted in all kinds of activities: schedule foreign flights, domestic and charter flights. Seat factor reached the level of 67% and has not changed.

Good transportation results were possible due to the introduction of three new aircraft - Embraer ERJ 145 and one Boeing 737 for charter purposes only. The development of offer is also reflected in the larger number of flights. In the 1st of the year, only as regards schedule flights, LOT made 3056 flights more than in the 1st half of 1999 (i.e. several more flights every day).

More flights are followed by increase of total income, whilst the Company’s results have not fallen. Gross result (excluding sales of shares in the companies) amounted to minus PLN 72.4m and was better by PLN 10m as compared with previous year. The negative result after 6 months is connected with the highly season-oriented quality of flights (months of the 2nd half of year are the best for the carrier) and remains characteristic for LOT for many years.

According to LOT estimations the end of the year shall be closed with a positive result and this despite the very high pricing of fuel and the fact that further dynamic development of the fleet is planned (by the end of the year LOT is to introduce for exploitation 5 more Embraer aircraft and 3 Boeing 737). This entails considerable additional costs, cumulated in the first phase (contractual costs, trainings, etc.).