Mozambique: Lam Records Net Profit of 5.3 Billion Meticais

Maputo — The publicly-owned company Mozambique Airlines (LAM) has recorded a net profit of approximately 5.3 billion meticais (82.9 million US dollars at the current exchange rate), during the 2025 fiscal year.

In a statement, the company revealed that this figure contrasts with a loss of 3.9 billion meticais recorded in 2024. The 2025 results show a reduction in liabilities of approximately 13 percent, accompanied by a significant decrease in debt to suppliers, as well as a 37 percent growth in assets, thereby strengthening the company's operational capacity and financial position.

According to the document, the company dismissed more than 130 employees "and operating costs were reduced by approximately 20 percent through the streamlining of its organizational structure, the optimization of available resources, and the renegotiation of contracts with strategic suppliers."

"These indicators demonstrate a consistent improvement in LAM's economic and operational performance, reflecting the commitment of management, employees, shareholders, and strategic partners to implementing the company's recovery process. This also reflects the positive trend in key economic and financial indicators, as a result of the impact of restructuring measures, cost rationalization, and the strengthening of operational efficiency implemented throughout the fiscal year", reads the document.

However, the company acknowledges that the recovery process is not yet complete as significant challenges remain, particularly regarding the consolidation of the financial structure, the strengthening of liquidity, and the continued implementation of measures to improve operational efficiency.

According to the statement, the company's equity improved by approximately 5.3 billion meticais, "driven by positive results achieved in 2025 and recapitalization measures implemented by shareholders. Nevertheless, equity remains negative, indicating that financial recovery must continue in a gradual and sustained manner over the coming fiscal years."

The company affirms its continued commitment "to implementing the measures outlined in the recovery plan, recognizing that consolidating these results will depend on the continuation of ongoing reforms, strengthened management discipline, and the maintenance of confidence among passengers, employees, partners, and shareholders."

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