LOT optimistic despite posting a disastrous 2003 result

It plans to do this by increasing its passenger numbers by 22% and reducing costs by zł.500 million. The liberalization of airline market, the presence of budget carriers and the global recession in airline sector have forced LOT to embark on a cost cutting program. This has been made all the more urgent as the carrier posted a 2003 net loss of zł.111.6 million, which appears a financial disaster when compared to the positive result of zł.112.6 million in 2002. LOT needs to meet the increasing expectations of an ever more demanding public, expand its flight network, as well as offer more flexible prices. The company believes that economic growth, higher demand for flights after accession to the EU and cooperation with Star Alliance will prove beneficial in the long-term. (Rzeczpospolita, p. B3; Puls Biznesu, p. 4) J.J.