Linhas Aéreas de Moçambique (LAM) achieved sales totaling approximately 2.2 billion meticais ($35 million) between May and August, reflecting the first signs of ongoing restructuring under new management.
According to data released on Monday, August 15, the results show progressive growth in monthly revenues since the beginning of the year, with particular emphasis on the post-restructuring period, driven by improved flight punctuality and a slight increase in seat availability.
The recent financial performance is also attributed to greater discipline in ticket management, control of credit sales, and collection processes, combined with the centralization of procurement and strengthened internal audit functions. These measures not only streamlined costs but also allowed the company to settle debts with strategic suppliers, including clearing outstanding obligations with the International Air Transport Association (IATA).
Agostinho Langa, chairman of the board of Portos e Caminhos-de-Ferro de Moçambique (CFM) — one of the state-owned companies now part of LAM’s shareholder structure — stated that the airline has entered a new phase of operational sustainability. “Today, we are approached for leasing business. Before, just the name LAM caused distrust,” he said, emphasizing the company’s credibility-building efforts.
On the operational side, a unified management system was implemented, replacing the previous 11 parallel systems, allowing for greater efficiency in the supply chain and procurement of goods and services. This measure is part of a broader strategy to recover the airline, which has faced severe limitations for years due to aircraft shortages and lack of investment in fleet maintenance.
LAM’s new shareholder structure, approved in May, comprises three major state-owned companies: Hidroeléctrica de Cahora Bassa (HCB), CFM, and the Mozambican Insurance Company (EMOSE), which appointed a non-executive board to guide the restructuring process.
As part of a plan to strengthen operational capacity, LAM plans to acquire up to five Boeing 737‑700 aircraft by December, in a process coordinated by the consulting firm Knighthood Global. Feasibility studies include, according to Langa, the expansion of national and regional routes. “We did not talk about new aircraft. If we waited for a new Boeing, it would take three years. We need immediate solutions,” he emphasized.
Despite the progress made, the CFM official warned that obstacles to the transformation process remain, both internal and external. “There are forces pulling in the opposite direction. We ask for patience; this path takes time,” he concluded.
Text: Felisberto Ruco
