LOT airlines to get EUR 631 mln in state aid - daily
LOT Polish Airlines will receive a financial support package worth hundreds of millions of euros as it wrestles with a crisis caused by the Covid-19 pandemic, Polish media has claimed.
According to the Business Insider website, LOT will receive PLN 2.8 billion (EUR 631.4 million) in an aid tranche, of which PLN 1 billion (EUR 225.5 million) is to be allocated to increasing the company's share capital. Another PLN 1.8 billion (EUR 405.9 million) will be allocated from the Polish Development Fund for a liquidity loan.
As the global passenger demand for air travel continues to slump, LOT has carried four times less passengers than in the previous year, reported the newspaper Dziennik Gazeta Prawna.
Krzysztof Moczulski, an airline spokesman, said that the company, which had seen a 25-30 percent growth in the number of travellers recent years, has suffered a massive drop in traffic in 2020. "According to the latest data, this year we should handle about 3 million passengers," he said.
According to the Business Insider, funds that the government plans to allocate to help the airline have already been accepted by the European Commission.
The airline has not officially commented on the matter yet.