External factors blamed for LOT's zl. 639 million operational loss in 2001

Flagship carrier LOT Polish Airlines' operations resulted in a net loss of zl. 639.1 million last year, compared with a zl. 28.2 million profit earned in 2000, according to a statement issued by the company. Although sales revenues remained almost unchanged, the company blames its poor performance on such external factors as a "downturn in the global airline sector, the events of September 11, high energy prices and strengthening of the zloty." LOT has also complained that the decreasing growth rate in Poland and across the world has limited business travel, which affected the company on particularly important markets in Europe and North America. On the other hand, last year LOT carried a record 3.2 million passengers, noting an 8% increase in foreign traffic and a 43% domestic traffic increase. At the same time, operational activity costs increased from zl. 2.74 billion to over zl. 3 billion. It has still not been decided which strategic alliance LOT will finally join, as Swissair's Qualifier alliance, to which LOT belonged, recently fell apart. The Treasury Ministry has already conducted talks with representatives of British Airways and Lufthansa. (Parkiet, p. 3) M.T.