MIAMI – LOT Polish Airlines (LO) is about to receive state financial aid amid COVID-induced losses in passenger traffic and revenue, Polish website The First News reported on December 17.
As stated in the report, with information from Business Insider, “LOT will receive PLN 2.8bn (€631.4m) in an aid tranche, of which PLN 1bn (€225.5m) is to be allocated to increasing the company’s share capital,” while “another PLN 1.8bn (€405.9m) will be allocated from the Polish Development Fund for a liquidity loan.”
Due to the slump in travel demand, LO has carried four times less passengers onboard its airplanes than the same period last year.
Sluggish Passenger Traffic
LOT spokesman Krzysztof Moczulski told the website that “the company, which had seen a 25-30 percent growth in the number of travelers recent years, has suffered a massive drop in traffic in 2020,” with an estimated traffic of 3m passengers.
Funds for the aid have already been accepted by the European Commission. LOT has not commented on the government aid yet.
Featured image: LOT Polish Airlines Boeing 737. Photo: Thomas Saunders