LOT hopes to improve profits via cost cutting program

LOT intends to improve its financial results through cost reductions and a new trading policy, which will enter force on March 1. Although LOT's 2003 results were not revealed, it is known that 300,000 more passengers flew with the carrier and that its financial projections were more or less sustained. "With annual revenues of over zł.3 billion and a net profit of only several million złoty, there is a lot of room for improvement," added Dubno. By 2006, LOT plans to lower its costs by 20%. Company representatives said that while LOT will lower its ticket prices, the company does not intend to fight with with budget airlines, as according to their data, around 80% of LOT passengers fly for business purposes. (Parkiet, p. 6)AK