LAM Mozambique Charters Growth Course with New Aircraft Tender

LAM Mozambique Airlines has launched a tender to wet lease up to five aircraft, marking a significant step in its ongoing revitalization strategy. This move aims to bolster the airline's capacity and capitalize on the burgeoning passenger and cargo demand within Mozambique and the broader Southern African region.

The tender, announced on July 31, 2025, invites bids from both domestic and international companies to provide aircraft, crew, maintenance, and insurance (ACMI) on a short-term basis. This wet lease arrangement offers LAM the flexibility to quickly expand its operational capacity without the substantial capital outlay required for outright aircraft purchases. The bid submission deadline is set for August 22, 2025, with the airline aiming to integrate the leased aircraft swiftly to address immediate market needs.

This strategic move comes as Mozambique's aviation sector experiences a period of robust growth. The country's passenger numbers reached a record 2.4 million in 2024, with projections for 2025 exceeding 2.7 million, an 11% year-on-year increase. Similarly, air freight volume witnessed substantial expansion, rising by 83.64% in 2022 and a further 14.11% in 2023. This surge in demand is fueled by major projects in various sectors, including electricity, oil and gas, and tourism, creating a ripe environment for LAM to expand its operations.

The aircraft lease tender is a key component of LAM's broader investment and restructuring plan. The airline, under new management and advised by the consultancy Knighthood Global, is undergoing a significant transformation following years of operational challenges and financial losses. This restructuring includes debt reduction, operational optimization, and recapitalization through new state-owned shareholders. The leasing initiative aligns with LAM's short-term capacity goals while the airline pursues long-term fleet modernization through the acquisition of new aircraft, including Boeing 737-700s.

Currently, LAM operates a limited fleet of four aircraft, including a Boeing 737-500, two Embraer EMB-145s, and a Bombardier CRJ900. The average fleet age is approximately 18.3 years, highlighting the need for newer, more efficient aircraft. The airline serves 11 domestic destinations and two international destinations in South Africa – Johannesburg and Cape Town. Several regional and intercontinental routes have been suspended due to financial constraints, but LAM has ambitious plans to reinstate these and launch new connections to destinations such as São Paulo, Mumbai, and Guangzhou.

The addition of five leased aircraft will significantly boost LAM's capacity. Calculations based on industry-standard metrics reveal a potential 235.8% increase in seat capacity, translating to an additional 745 seats. This expansion will enable LAM to accommodate the growing passenger demand, increase flight frequencies, and potentially reinstate suspended routes. The increased capacity also presents opportunities to enhance cargo operations, contributing to the airline's revenue growth.

The impact of this fleet expansion extends beyond operational capacity. With a projected increase in passenger numbers and assuming a 75% load factor, LAM could potentially generate an additional €170 million in annual revenue. This financial boost will be crucial for the airline's ongoing recovery and its ability to invest in further fleet modernization and network expansion.

The tender also holds broader significance for African aviation. LAM's strategic move reflects a growing trend among African carriers to leverage wet lease arrangements to address capacity constraints, manage seasonal demand fluctuations, and bridge gaps while awaiting new aircraft deliveries. This approach allows airlines to respond quickly to market opportunities and maintain operational flexibility in a dynamic environment.

LAM Mozambique's aircraft leasing tender is a decisive step towards securing a stronger foothold in the regional aviation market. By expanding its capacity, modernizing its fleet, and optimizing its operations, the airline is positioning itself for sustainable growth and a return to profitability. This initiative not only benefits LAM but also contributes to the overall development of Mozambique's aviation sector and enhances regional connectivity within Southern Africa.