The Government has decided to terminate its contract with euroAtlantic Airways regarding the Maputo-Lisbon route, explained João Matlombe, Minister of Transport and Logistics. This decision was part of the restructuring of Mozambique Airlines (LAM). Following the termination, euroAtlantic requested compensation of $21 million (18.5 million euros).
Addressing inquiries from journalists, the minister confirmed that a team is evaluating the contract, having determined that the compensation demand is “excessively high.”
“Currently, the preliminary notification, which is required when terminating a contract, amounts to about $3 million. This is the proposed figure, though further discussions are ongoing,” added Matlombe, acknowledging that financial adjustments are still pending between the two companies, including invoices that were paid by LAM for services not yet performed.
On February 27, euroAtlantic Airways announced the immediate termination of its contract with LAM, citing the Mozambican carrier’s failure to pay its substantial debts and indicating plans to take further action.
“EAA aims to safeguard its commercial interests and will employ all necessary legal and commercial measures to ensure an orderly contract conclusion,” declared the Portuguese company in a statement.
The issue revolves around the Maputo-Lisbon route, previously managed by euroAtlantic aircraft, a service suspended by LAM on February 19.
“EAA, which began operating this route for LAM in December 2023, was only informed of the sudden suspension of all services on this route on February 11, 2025,” noted the airline.
euroAtlantic’s president, Stewart Higginson, expressed confidence in the document that LAM would urgently settle its outstanding financial obligations.
“However, we remain open to supporting LAM in the future as the situation progresses, and we hope to strengthen the relationship developed over the years,” Higginson added.
LAM announced on February 18 that the Maputo-Lisbon route would be suspended from the following day, revealing that the company had incurred losses exceeding $21 million (18.5 million euros) since 2023 due to this operation.
“We cannot proceed with international flights while still experiencing irregularities in domestic routes,” stated LAM’s spokesperson, Alfredo Cossa, during a press conference in Maputo.
The Maputo-Lisbon route, dormant for nearly 12 years, was resumed on November 20, 2023, as part of LAM’s revitalization plan after Fly Modern Ark (FMA), a South African company, took over the airline’s management in April of that year for restructuring purposes.
A Boeing 777 with 302 seats, provided through a partnership with EuroAtlantic, managed the transport. However, LAM’s new Board of Directors determined the operation to be unsustainable, as per Alfredo Cossa.
“We were funding this route with resources from the domestic market. It reached a point where we couldn’t sustain it any longer,” Cossa explained.
Besides the Maputo-Lisbon route, LAM also suspended connections to Harare, Zimbabwe, and Lusaka, Zambia, deeming them unsustainable as well.
