LAM Mozambique Airlines (Linhas Aéreas de Moçambique) has announced the suspension of its intercontinental route to Lisbon, as well as regional flights to Harare, Zimbabwe, and Lusaka, Zambia, due to financial losses totaling $21.3 million, according to ch-aviation.
Speaking at a press conference on February 18, airline spokesperson Alfredo Cossa stated that the airline is also reviewing the viability of its Maputo-Cape Town route. This service is currently operated using a CRJ900 aircraft leased from South African carrier CemAir.
Cossa revealed that the Lisbon route, reinstated in December 2023 after a 13-year hiatus, had incurred losses amounting to $21 million. The service, initially operated with a Boeing 767-300ER and previously a Boeing 777-200ER leased from euroAtlantic Airways, has been plagued by delays and cancellations, likely due to overdue lease payments.
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The route had been relaunched under discounted fares while the airline was temporarily managed by Fly Modern Ark, which took over operations in April 2023. However, Cossa admitted that LAM had been sustaining the Lisbon route using revenue from its domestic operations, a strategy that is no longer viable.
In addition to long-haul struggles, LAM has been losing $307,000 on flights to Lusaka and Harare. These routes were operated by its subsidiary, MEX – Mocambique Expresso, using its only active Embraer E145 aircraft (C9-MEH). The final flight on the Maputo-Lusaka-Harare-Maputo route was on January 5, while another flight between Maputo, Quelimane, and Lusaka took place on January 12.
Cossa explained that these cancellations are part of a broader restructuring strategy aimed at improving financial sustainability. The airline plans to prioritize more profitable domestic flights and enhance its operational management.
To stabilize the airline’s finances, the Mozambican government is moving to sell a 91% stake in LAM to public companies. Additionally, authorities have opened a tender for fleet renewal, inviting 14 companies to submit bids by March 5 for the acquisition of three Embraer E190s and four Boeing 737-700s.