The state-owned airline Linhas Aéreas de Moçambique (LAM) has been reinstated in the International Air Transport Association (IATA) financial settlement system after settling its outstanding financial obligations with the organization.
According to a statement released by the airline, the reintegration took effect on October 2, following the company’s full compliance with its financial commitments as part of the ongoing restructuring process.
IATA, which brings together the world’s leading airlines, manages the centralized settlement system that governs transactions such as ticket sales, cargo transport, maintenance services, and airport fees. LAM’s readmission to this system will allow the airline to make and receive payments in a regular and internationally recognized manner, thereby strengthening its financial and operational credibility.
Although LAM’s statement did not disclose the amounts involved in the operation, recent data from the Ministry of Finance indicates that the airline’s total debt decreased by 2.4% in the second quarter of 2025, reaching 5.8 billion meticais (78.5 million USD), representing a nominal reduction of 144.6 million meticais (1.9 million USD) compared to the previous quarter.
The accumulated debt will be paid in annual installments, as stipulated in a Council of Ministers resolution approved on September 2, which authorized the State to guarantee the process with commercial banks. Despite persistent challenges, the Government has reiterated its commitment to maintaining a functional and safe airline. In this context, the acquisition of five aircraft is planned by December, including the Boeing 737-700 model. Simultaneously, a tender is underway for the lease of another five aircraft to minimize operational constraints affecting the airline’s regular operations.
LAM has faced long-standing issues related to a limited fleet and lack of investment, with recorded — non-fatal — incidents linked to maintenance problems. As part of the restructuring, the company has focused on domestic routes and almost entirely ceased international operations, while also undergoing changes in its management and shareholder structure, with the entry of Hidroeléctrica de Cahora Bassa (HCB), Caminhos-de-Ferro de Moçambique (CFM), and Emose as new shareholders.
The airline’s readmission to IATA occurs within the context of a deep financial and operational restructuring, strongly supported by the State. In early September, the Government approved a resolution allowing phased repayment of the airline’s debt, with State guarantees to commercial banks, enabling compliance with IATA’s requirements.
LAM’s situation reflects broader challenges in Mozambique’s aviation sector, where, according to recent association data, over 200 million USD in revenue from domestic air transactions was withheld due to financial defaults, placing Mozambique among the world’s major debtor countries.
Additionally, the fiscal risk associated with public aviation companies reaches 1.2% of GDP, as noted in the Economic and Social Plan and State Budget (PESOE) proposal for 2025. Despite these adversities, LAM has been working to recover operational capacity, recently leasing an Airbus A319 with maintenance included, while a tender is underway for leasing another five aircraft to minimize recurring flight service constraints.
Source: Diário Económico
