On February 18, Linhas Aéreas de Moçambique (LAM) announced the suspension of several major routes, including flights to Lisbon, Harare, and Lusaka, citing financial unsustainability. The decision reflects the airline’s ongoing struggles to maintain profitability in an increasingly challenging aviation market.
According to LAM spokesperson Alfredo Cossa, the airline incurred losses exceeding $21 million (R387 million) on the Lisbon route alone. The route’s operation was heavily dependent on funds generated from the domestic market, a model that proved to be unsustainable in the long run. “We fuelled this (Lisbon) route based on funds from the domestic market. We produced and paid for it, and at this point, we can no longer cope,” Cossa stated during a press conference.
LAM’s struggles are not unique in the African aviation industry, where many national carriers face challenges such as high operational costs, fluctuating fuel prices, and limited passenger demand on certain routes. Airlines often rely on cross-subsidization, using profitable domestic routes to fund international operations. However, this strategy has its limits, as seen in LAM’s decision to cut loss-making routes.
Passengers who had already purchased tickets for the now-suspended Maputo-Lisbon service will be accommodated on other airlines through agreements made by LAM. This ensures that travelers are not left stranded due to the sudden route cancellations. However, passengers who frequently relied on LAM’s direct services to Harare and Lusaka will now need to consider alternative carriers or adjust their travel plans accordingly.
LAM’s leadership has emphasized that the route suspensions are part of a broader restructuring strategy aimed at ensuring the long-term viability of the airline. “Once we’ve put our house in order and consolidated our position, we’ll look at intercontinental and regional routes,” Cossa noted.
This statement suggests that LAM intends to focus on stabilizing its domestic operations and strengthening its financial foundation before revisiting international expansion. The airline is likely to assess its most profitable routes and optimize its fleet and resources accordingly.
LAM’s decision highlights a wider trend in African aviation, where many national carriers struggle with profitability due to high operational costs, limited demand, and competition from larger international airlines. Several African airlines, including South African Airways, Kenya Airways, and Air Zimbabwe, have faced similar financial difficulties in recent years, leading to route suspensions, restructuring efforts, or government bailouts.
For LAM, successfully regaining financial stability could involve cost-cutting measures, improved efficiency, and potential strategic partnerships with other carriers. Additionally, strengthening domestic and regional routes before expanding internationally may provide a more sustainable path forward.
The suspension of LAM’s flights to Lisbon, Harare, and Lusaka marks a significant shift in the airline’s operational strategy. While this decision may inconvenience some travelers, it is a necessary step for LAM to address its financial difficulties. Moving forward, the airline’s ability to streamline operations and explore profitable market opportunities will determine its future success in both regional and international aviation markets.
