Mozambican flag carrier airline LAM reported earnings totalling 3.7 billion meticais (€52 million) for the first half (H1) of 2024, and announced plans to acquire four additional aircraft by year’s end, increasing the country’s belly-cargo options for the airfreight industry.
However, LAM chair Américo Muchanga issued a measured response to the airline’s H1 performance.
“Although the figure falls slightly below our projections, if we achieve similar earnings in the second half of the year, we’ll surpass the revenues recorded in the previous year.
“We are anticipating growth of approximately 19%,” he said during the Maputo International Fair (FACIM), the country’s largest trade exhibition.
News agency Agência Lusa reports that LAM transported 330 000 passengers across its domestic, regional, and intercontinental routes during this period, a number that also missed its forecasts.
“We had expected to carry around 500 000 passengers in the first half of the year. However, it is worth mentioning that our domestic services exceeded expectations,” Muchanga said.
Currently, LAM operates six aircraft and aims to bolster its fleet with the acquisition of four more this year.
“We plan to introduce two additional Boeing 737s and two Embraer 145s to strengthen our domestic and regional operations.”
The airline currently serves 12 domestic destinations and regularly flies to Johannesburg, Dar es Salaam, Harare, Lusaka, and Cape Town, with Lisbon as its sole intercontinental route.
“LAM intends to maintain the Maputo-Lisbon service. We are working towards ensuring that this route operates sustainably and generates profits,” said Muchanga.
In July, LAM faced significant challenges when a major overhaul of its largest aircraft, a Boeing 737-700, necessitated rescheduling several flights, leading to customer complaints and widespread criticism.
Muchanga assumed the role of chairman in July, succeeding Theunis Crous, who had been serving on an interim basis since February.
This leadership change forms part of a broader restructuring of the airline led by Fly Modern Ark (FMA), a South African firm hired to rehabilitate LAM.
FMA has managed LAM since April last year, implementing a comprehensive restructuring strategy. The revitalisation efforts are crucial for overcoming longstanding operational difficulties, which have stemmed from a limited fleet and underinvestment, compounded by safety incidents attributed by experts to poor maintenance practices.
During FMA’s tenure, the company uncovered fraudulent schemes resulting in nearly €3 million in losses through ticket sales via unauthorised payment terminals.
Mozambique’s Central Anti-Corruption Office (GCCC) has launched an investigation into alleged corruption related to ticket sales and fleet management, with assets already seized.
“We have identified several suspects and conducted searches and seizures. The investigation is ongoing, but further details cannot be disclosed due to judicial secrecy,” GCCC spokesperson Romualdo Johnam said earlier this month.
