Maputo, July 13, 2026 (Lusa) - The state-owned airline Linhas Aéreas de Moçambique (LAM) recorded a profit of €72.6 million in 2025, following previous years of financial challenges, having benefited from debt write-offs totalling over €81 million, according to the company’s financial report.
The financial statements, to which Lusa gained access on Monday, show that the state-owned airline ended the 2025 financial year with a net profit of 5,263 million meticais (€72.6 million), reversing the 3,920 million meticais (€54.1 million) loss recorded in 2024.
However, revenue from sales and services fell from 9,350 million meticais (€129 million) to 7,827 million meticais (€108 million). The document states that the adjustment in the regional and international passenger and surcharges categories “results from the cancellation of intercontinental flights (Lisbon operations) and the reduction in regional flights”.
Revenue from regional and international passengers fell from 1,263 million meticais (€17.4 million) in 2024 to 386 million meticais (€5.3 million) in 2025.
The report states that “the item ‘reversal of amounts payable’ includes debt write-offs carried out in accordance with instructions issued by the shareholder, the Mozambican State, represented by IGEPE” – the Institute for the Management of State Holdings – for “debt restructuring” with regard to companies in the State-owned Enterprise Sector.
In the case of Aeroportos de Moçambique, the company wrote off a debt of 2,690,322,406 meticais (€37.1 million), and in the case of Petróleos de Moçambique, a debt of 3,203,627,951 meticais (€44.2 million).
The reversal of amounts payable totalled 5,894 million meticais (€81.3 million).
The company has been addressing operational challenges for several years, linked to a reduced fleet and a lack of investment, resulting in a number of non-fatal incidents that experts attribute to poor aircraft maintenance. It is currently undergoing a major restructuring process.
In 2025, Hidroeléctrica de Cahora Bassa (HCB) approved the acquisition of 25.2% of LAM’s share capital as part of the airline’s restructuring process, followed by Emose and Caminhos de Ferro de Moçambique (CFM), each taking a 15.4% stake.
According to the 2025 General State Accounts, HCB, a state-owned company, approved an investment of $36 million (€30.8 million) in this process and the creation of Fly Moz, an entity whose “objective is to secure financing for LAM”, which is also state-owned.
As part of this restructuring of LAM, approved in 2025 by Mozambique’s government, two other state-owned companies invested and acquired a stake in the flag carrier’s share capital.
The insurance company Emose approved an investment of $22 million (€18.8 million), “thereby becoming a 15.40% shareholder in LAM”, as did the company Portos e Caminhos de Ferro de Moçambique, according to the General State Accounts.
The document also states that the state directly subsidised LAM with 255.4 million meticais (€3.4 million) in 2025.
A year ago, plans were announced to sell off 91% of LAM’s share capital, but the transactions carried out since then still account for 56% of the company’s shareholding structure.
PVJ/ADB // ADB.
Lusa
