Mozambique | At least 130 workers left airline LAM in 2025

At least 130 workers leftLinhas Aéreas de Moçambique(LAM) in 2025, announced the state airline today, which acknowledges “significant challenges” in the company’s recovery process despite the positive evolution of key economic-financial indicators. The 130 employees were separated from the company under the “workforce rightsizing,” stated the Mozambican flag carrier in a note released today regarding the approval of the 2025 financial results by shareholders during the general meeting held on June 29. In the document, the Mozambican carrier indicates that it closed the 2025 financial year with a positive net profit of 5.3 billion meticais (72.7 million euros), consolidating a “trajectory of financial and operational recovery.” “The results reflect the positive evolution of the main economic-financial indicators, evidencing the effects of the restructuring, cost rationalization, and operational efficiency strengthening measures implemented throughout the year,” the note reads.

According to the company—in a deep restructuring process since 2025 that includes workforce departures through mutual agreement and retirement—the results approved by shareholders also show a reduction of roughly 13% in liabilities, accompanied by a significant decrease in supplier debt, as well as a 37% growth in assets, reinforcing operational capacity and equity position. In 2025, LAM also reduced operational costs by about 20%, resulting from organizational structure rationalization, resource optimization, and the renegotiation of contracts with strategic suppliers, contributing to a “consistent improvement” in performance. For the Mozambican state company, the positive result and progress achieved in 2025 represent an important step toward strengthening the ability to provide a safer, more regular, efficient, and sustainable service, though it admits the recovery process is not yet complete.

“Despite the progress achieved, LAM recognizes that the recovery process is not yet concluded. Significant challenges persist, namely regarding the consolidation of the financial structure, the strengthening of liquidity, and the continuity of measures to improve operational efficiency,” notes the statement. The Mozambican State injected 1.703 billion meticais (23.5 million euros) intoLinhas Aéreas de Moçambique(LAM) in 2025 to enable the carrier to meet obligations and commitments.

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LAM has faced operational issues for several years related to a reduced fleet and lack of investment, currently undergoing a restructuring process. Hidroelétrica de Cahora Bassa(HCB) approved in 2025 the acquisition of 25.2% of LAM’s share capital as part of the airline’s restructuring, followed byEmpresa Moçambicana de Seguros(Emose) andCaminhos de Ferro de Moçambique(CFM), each taking 15.4%. According to the 2025 General State Account, HCB approved an investment of 36 million dollars (30.8 million euros) in this process and the creation of Fly Moz, an entity with the “objective of securing financing for LAM.”

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