‍PARIS — In an aerospace landscape defined by wafer-thin margins and shifting alliances, LOT Polish Airlines (LO) has placed an order for up to 84 Airbus A220, with 40 aircraft in firm, including 20 A220-100 and 20 A220-300 aircraft, plus 44 options.

"It was over a year ago when we started to work on this project — a project of refleeting, of finding the right partner for the new generation regional fleet for LOT Polish Airlines." Michał Fijoł, CEO, LOT Polish Airlines, commented during the press conference on the first day of the 2025 Paris Air Show. 

The announcement marks a significant pivot in LO’s regional fleet strategy and joins the ranks of Airbus operators once deliveries commence between 2027 and 2032, potentially stretching into the mid-2030s if all options are exercised.

Airbus vs. Embraer: A Clash of Regional Titans

LOT has evaluated the Airbus A220 alongside Embraer’s E195-E2s to replace approximately 40 Embraer E-Jet E1 family aircraft, whose average operational age is 15 years. The decision to favor Airbus over Embraer signals a shift in the long-standing industrial relationship between LO and the Brazilian airframer. Since the early 2000s, LO has been a key Embraer partner—not only as a launch customer for the E-Jet in Europe but also as a strategic collaborator on maintenance and pilot training. 

"We had two very competitive offers, but I'm pleased that you [Airbus] wanted us more. And that’s why we are here today." Michał Fijoł commented, acknowledging Airbus’ successful bid.

LOT’s Embraer fleet has been supported by a deep supply chain footprint in Poland, including MRO facilities and connections to the Polish defense industry. Last February, Embraer said that it was considering establishing a final assembly line for its KC-390 military cargo aircraft in Poland, amid strong sales momentum for the plane in Europe.

The move to embrace the Airbus A220 family of aircraft appears to be a response to pressures and opportunities in Europe’s rapidly evolving aviation landscape. The addition of the type to the fleet allows LO to start connecting secondary cities across Europe, the Caucasus, and even parts of Central Asia directly to Warsaw, positioning itself as an alternative to mega-hubs like Frankfurt or Vienna.

The aircraft could also backfill routes feeding its long-haul services to North America and Asia, essential for LO’s hub-and-spoke ambitions.

Geopolitics and Diversification

Beyond OEM diversification, Airbus offers strong delivery reliability and political backing through European Union military and industrial treaties. Poland, NATO’s highest defense spender as a percentage of GDP per capita, is now seeking to diversify its security partnerships beyond its traditional links with Washington, and has deepened ties with France, sealing reciprocal defense treaties. 

The Polish Government's backing for LO’s fleet modernization and plans for Warsaw’s Central Communication Port (CPK) make today’s announcement represent more than a business decision—it's part of a broader future national infrastructure and industrial strategy plans.

Introducing Airbus into a historically Boeing/Embraer fleet is a major shift, not just for maintenance crews and pilots, but for corporate culture. It introduces new ways of working, new standards of performance, and a different philosophy of aircraft design. How LOT integrates this aircraft could be a case study in how legacy carriers manage transformation while scaling.

Looking into the Numbers

LOT Polish Airlines delivered a strong financial performance in 2024, reporting revenues of PLN 9.93 billion (approximately US$2.6 billion) and an operating profit (EBIT) of PLN 805.7 million (approximately US$218 million), which translated to an impressive 8.1% operating margin. Net profit reached PLN 688.5 million (US$186.2 million), reflecting effective cost discipline and strategic growth despite intensified competition and lower fares.

That result marks LO’s second-best year ever, compared to its record-setting 2023 earnings, when net profit exceeded PLN 1.1 billion (US$297.5 million) on revenues of around PLN 10.1 billion (US$ 2.73 billion). Equity rebounded to PLN 1.14 billion (US$310 million), recovering from a heavy loss just three years earlier (PLN –734 million in 2021.

Passenger traffic also hit a milestone, with 10.7 million travelers carried—a 0.7 million increase over 2019—supported by adding 11 aircraft and carved-out charter operations that grew APKm by 10.6% and served 1.3 million charter passengers (+18.5%)

These results demonstrate LO’s financial strength, including recovery from pandemic-era losses, profitable expansion, robust margins, and a strengthened balance sheet as it enters its next phase of growth.

The Big Picture

LOT’s decision to pivot from its long-standing Embraer partnership toward Airbus and the A220 is not just a mere fleet modernization—it’s a realignment with long-term implications.

The move disrupts nearly two decades of close industrial and military-linked cooperation with Embraer. This relationship extended beyond civil aviation into MRO infrastructure, pilot training, and even future military platforms, such as the KC-390. By choosing Airbus, LO signals a shift—not just technologically, but also politically and economically—as it aligns with EU-aligned aerospace and defense ecosystems.

This is happening against a backdrop of increasing pressure on European carriers: Eurocontrol forecasts that flight volumes will return to 99% of pre-pandemic levels by 2025, while en-route delays and ATC constraints add to operational stress. IATA data show that while global profitability remains positive, margins are thinning, and structural costs—such as fuel, financing, and carbon—are becoming increasingly difficult to offset.

For a mid-sized national carrier like LO, cost-effective aircraft with flexible deployment options are no longer a preference; they are a necessity.

Yet, it’s hard to argue with the timing. Financially, LO is in strong form—posting its second-best result ever, rebuilding equity, and carrying record passenger volumes. In essence, the LO’s Airbus A220 deal is a fork-in-the-road moment. It is choosing diversification over loyalty, capability over continuity, and European integration over old alliances.

Whether that leads to a stronger, more globally agile LO—or a more complex, less cohesive one—will depend not on what was ordered in Paris today, but on what will be delivered in Warsaw in the years to come.

Stay tuned for Airways' #PAS2025 coverage, bringing you the latest developments live from Paris this week.