Maputo, Oct. 8, 2025 (Lusa) - State-owned Linhas Aéreas de Moçambique (LAM) announced on Wednesday that it has been reinstated to the financial compensation mechanism of the International Air Transport Association (IATA), approximately a year after settling its debts with the organisation.
In a statement, LAM said that its reintegration into the organisation, which brings together international airlines, came into effect on 2 October, after it had "fully complied with its financial obligations to IATA", as part of the company's ongoing restructuring, although without giving any figures.
"With this decision, LAM resumes active participation in the global accounts settlement system, being able to make and receive payments in a regular and recognised manner from airlines and international partners. This step reinforces the carrier's financial and operational credibility," reads the statement.
IATA is responsible for the international financial clearing mechanism, which ensures that all transactions between airlines and entities in the sector, including ticket sales, cargo transport, maintenance services and airport taxes, are carried out in a secure, centralised and efficient manner, recalls LAM.
On 18 September, Lusa reported that the total debt of state-owned airline Linhas Aéreas de Moçambique (LAM) fell by 2.4% during the second quarter, to almost 5,889 million meticais (€78.5 million), according to data from the Ministry of Finance.
According to data from a report on the evolution of Mozambican public debt, in the case of LAM, this is a nominal reduction of 144.6 million meticais (€2 million) compared to the first quarter of 2025, when this total volume - domestic debt - exceeded 6,033 million meticais (€80.5 million).
LAM will be able to pay off the accumulated debt in annual instalments, which will also be guaranteed by the state with commercial banks, according to the resolution authorising the operation, approved on 2 September by the cabinet.
On 23 September, Mozambique's government acknowledged the difficulties involved in restructuring LAM. Still, it stressed that the aim was to ensure the company's functionality and safety, with five aircraft expected to be acquired by December.
LAM has been facing operational problems for several years, related to a reduced fleet and a lack of investment. A record of some non-fatal incidents has been associated with poor aircraft maintenance by experts, and the airline is currently undergoing an in-depth restructuring process.
The Mozambican state-owned airline has practically stopped operating international flights this year, concentrating on domestic routes as part of a restructuring process that also led to the arrival in May of a new board of directors and the appointment of public companies HCB, CFM, and Emose as shareholders.
To minimise recurring problems with flight cancellations, it plans to purchase five Boeing 737-700 aircraft and, pending this process, has launched a tender to lease another five.
PME/ADB // ADB.
Lusa
