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Reports: Polish Airlines LOT will receive hundreds of millions in government support

The Polish airline will transport four times fewer passengers than expected, but the company will survive

editor: REMIX NEWS
author: Krzysztof Śmietana
via:

2020 will be a disastrous year for LOT, just as it will be for any airline. The company, which in recent years recorded 25 to 30 percent growth in the number of passengers it transported, has now been affected by a massive collapse in traffic.
“According to the latest data, this year, we will have handled around 3 million passengers,” said LOT spokesman Krzysztof Moczulski.
He added that the figure of 2 million passengers that appeared in the media a few days ago was an incorrect estimate, although the collapse was still significant.
The magnitude of LOT’s troubles is huge, as just a year ago, the carrier handled over 10 million passengers. Prior to the pandemic, LOT estimated that its customers would grow to 12 million in 2020. PLL LOT According to LOT spokesman Krzysztof Moczulski, the Polish airline will transport just 3 million passengers in 2020, compared to over 10 million in 2019. This decrease has obviously affected the company’s financial situation. While many national carriers such as Air France or Lufthansa received public aid from their governments a few months ago, Minister of State Assets Jacek Sasin has said aid was coming for LOT since spring; now it looks like such support is finally being prepared.
The assistance from the Polish State has also presumably been accepted by the European Commission.
According to Dziennik Gazeta Prawna’s daily informant, LOT is set to receive €632 million in aid, out of which €230 million is intended for increasing the company’s share capital. A total of €402 million from the Polish Development Fund will be used for a liquidity loan.
For now, however, LOT does not want to confirm this information. Neither does the Ministry of State Assets.
“The aid is still in the process of being accepted in Brussels. We are hoping that this issue will ultimately be resolved before Christmas,” Moczulski explained.