LAM Mozambique Faces USD 173,000 Fine Over Unlawful Domestic Flight Surcharge
The Mozambican Competition Regulatory Authority has imposed a significant penalty on the national carrier, LAM Mozambique Airlines, levying a fine exceeding 11 million meticais (approximately USD 173,000) for the unauthorized application of a surcharge on domestic flight tickets. This surcharge inflated prices by as much as 60%, despite a formal suspension order issued back in 2021.
Originally, the surcharge was introduced to offset rising fuel costs on international routes. However, LAM extended this additional fee to domestic flights without any regulatory approval or clear justification, triggering regulatory intervention. The Competition Authority’s decision underscores the importance of transparent pricing and adherence to competition laws within Mozambique’s aviation sector.
Under the current directive, LAM has a strict 15-day deadline to settle the imposed fine and a two-month window to eliminate the surcharge from all domestic ticket prices. This enforcement action comes at a pivotal moment as Fastjet Mozambique prepares to enter the domestic market, poised to challenge LAM’s longstanding monopoly and introduce more competitive dynamics to the sector.
The fine not only highlights the regulatory authority’s commitment to protecting consumer interests but also signals a shift toward greater market liberalization in Mozambique’s aviation industry. For years, LAM has been the dominant player, but the emergence of competitors like Fastjet is expected to drive improvements in service quality, pricing transparency, and overall market efficiency.
From a broader perspective, this development reflects ongoing efforts by Mozambican authorities to strengthen competition frameworks across key sectors, including aviation. The Competition Regulatory Authority, operational since early 2021, has demonstrated a proactive stance by enforcing compliance and penalizing anti-competitive practices, as seen in previous cases involving other industries.
For travel professionals across Africa, this case serves as a reminder of the evolving regulatory landscape in Mozambique and the wider region. Airlines operating within these markets must navigate increasingly stringent oversight while adapting to new competitive pressures. The removal of unjustified surcharges will likely improve affordability for domestic travelers, potentially stimulating demand and encouraging more frequent air travel within Mozambique.
As Mozambique’s aviation market opens up, travel stakeholders should anticipate a more dynamic environment where pricing strategies, service offerings, and regulatory compliance will be critical factors shaping the future of air travel. The LAM surcharge fine is a clear signal that regulatory bodies are vigilant and ready to act to ensure fair competition and protect consumer rights.
In the coming months, the impact of Fastjet’s market entry combined with regulatory enforcement will be closely watched by industry observers. This could mark the beginning of a new era for domestic air travel in Mozambique, characterized by enhanced competition, better pricing, and improved service standards—trends that will resonate across Africa’s growing aviation landscape.