This week, LOT Polish Airlines, the flag carrier of the Central European nation, announced its financial results for 2022, a report that served as the culmination of months of data analysis and preparation.
In the report, the carrier logged a gross profit of $28 million, bouncing back from a $320 million loss the airline had incurred the previous year. Notably, the airline’s 2022 profit is its highest since 2018, when the carrier posted net results of over $53 million.
The airline has clearly demonstrated its ability to bounce back from the challenges created by COVID-19 and perform profitably in a post-pandemic world.
Aside from the airline’s net positive profit, additional data points are important to note from LOT’s financial results announcement. Specifically, the breakdown of the revenue generation from the carrier’s two major divisions, LOT Polish Airlines (passenger) and LOT Cargo, provides some interesting insights.
Revenues from passenger operations have always provided the vast majority of the carrier’s income; in 2022, they totaled over $2 billion. Still, LOT Cargo has continued to expand rapidly, posting net revenues of over $250 million – the highest number ever from the carrier’s cargo division.
During the passenger travel slowdown of 2020 and 2021, cargo demand skyrocketed, and LOT, like many airlines, expanded its cargo operations to meet the market surplus. Now, from these financial results alone, we can see how LOT Cargo’s efforts over the past two years have begun to pay dividends.
In 2022, LOT Cargo notably doubled the size of its partnership with Edinburgh-based Menzies, a leading player in cargo operations at airports across Europe.
Where LOT stands in 2023
Throughout 2022, the Polish flag carrier completed over 90,000 flights carrying over 8 million passengers to the carrier’s 120 different destinations. The airline achieved this with an 80% load factor on its fleet of 75 aircraft.
Now, LOT stands in an extremely strong position for growth and expansion. Just last week, the carrier announced it would be launching flights from Wrocław to Seoul, South Korea, a unique choice given the lack of long-haul flights to the Polish city.
The airline’s leadership is greatly encouraged by the past year’s financial performance. Michael Fijol, the President of LOT’s Management Board, issued the following statement regarding the financial results announcement:
The data we’re publishing is the culmination of the enormous work and commitment exercised by the entire LOT team. Our passengers and commercial partners are always our focus. And the company’s financial results are a testimony to the fact that we know how to address their expectations properly. LOT is profitable, LOT is hospitable, and LOT is punctual.
Now, the Star Alliance carrier is prepared to continue expanding in the second half of 2023. This summer alone, LOT is flying a record 60 frequencies each week between North America and Poland.
With LOT Cargo demonstrating impressive growth and LOT’s passenger division regaining its pre-pandemic financial position, the Polish carrier is prepared for another strong year in 2023.