Mozambique: New LAM management reports US$40 million revenue in four months

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Mozambique: New LAM management reports US$40 million revenue in four months

2:20 CAT | 16 Sep 2025

Photo: Notícias

Revenue of state-owned Mozambique Airlines (LAM) reached US$40 million between May and August, with the company’s new management warning of “interests” still trying to delay the company’s restructuring.

The increase “results from improvements in flight consistency and a slight increase in seats available”, the company said in information released today (16-09).

In the document, the company indicates that average sales from the beginning of the year through May remained at around US$9 million (€7.6 million), beginning a slight increase the following month to reach just over US$11 million (€9.3 million) in August, giving a total of just over US$40 million in the last four months.

The same document indicates that these sales are the result of the acquisition of a new aircraft, greater control over ticket issuance and revenue generated, control of credit sales, greater rigor in debt collection and centralization of the goods and services purchasing process.

There was also “a strengthening of the role of internal audit to improve internal controls, amortization, and payment plans for debt repayment with critical suppliers of aeronautical equipment”, including payment of outstanding monies owed to the IATA international travel organization.

At a press conference in Maputo this Tuesday, the chairman of the board of directors of the Mozambique Ports and Railways (CFM), which is part of the new shareholder structure, said that LAM is achieving financial results that allow it to cover its operations, including paying off debts with suppliers.

“Today, there are many entities interested in leasing aircraft to LAM. In the past, it was impossible. All you had to do was hear about LAM, and people would slam the door and turn their backs on us. But today, they realize we can pay,” said Agostinho Langa.

LAM has moved forward with centralizing the company’s integrated management system, allowing it to streamline resources, especially in the acquisition of goods and services, according to information shared today.

The company has faced operational problems for several years related to a small fleet and lack of investment, with a number of non-fatal incidents reported, attributed by experts to poor aircraft maintenance. It is currently undergoing a major restructuring process.

In May, the appointment of a non-executive board of directors was approved, composed of representatives from the three state-owned companies that became LAM shareholders this year: Hidroelétrica de Cahora Bassa (HCB), Ports and Railways of Mozambique (CFM), and Empresa Moçambicana de Seguros (Emose).
To minimize recurring flight cancellations, LAM will purchase up to five Boeing 737-700 aircraft, in a process led by Knighthood Global, a consulting firm hired by the new shareholders to advise on the company’s restructuring.

In the same statements to reporters, the president of CFM stated that these five new aircraft will be acquired by the first half of December, with feasibility studies underway for the opening of new routes.

“At no point did we promise to acquire new aircraft […]. If we wanted a new Boeing aircraft, we would have to wait about three years to get that aircraft, but we want aircraft now,” Agostinho Langa explained.

In the same statements, Langa warned that the restructuring of LAM “needs some time and patience not only from the population, but also from the government itself”.

“We have been stressing that this will take some time and will not happen as quickly as expected, because there are some interests, both internal and external, that are pulling in the opposite direction, trying to delay this process a bit,” he said.

Source: Lusa