euroAtlantic Airways terminates contract with LAM over financial debts

Portuguese charter and wet-lease carrier euroAtlantic Airways has terminated its contract with Mozambique's flag-carrier, Linhas Aéreas de Moçambique (LAM) on February 27, 2025, citing the airlines failure to settle its “substantial” financial debts.

This contract termination follows LAM’s announcement that it would be suspending its Maputo to Lisbon route on February 19, 2025. euroAtlantic, which began operating the route for LAM in December 2023, said it was only informed of LAM’s sudden suspension of all services on this route eight days prior on February 11, 2025.

“We trust that LAM will meet its outstanding financial obligations in full as a matter of urgency,” said Stewart Higginson, CEO and president of euroAtlantic Airways.

He added: “Naturally however, we also remain available to support LAM in the future as the situation develops and to hopefully build on the relationship both parties have forged over recent years.”

euroAtlantic noted that it is committed to protecting its business interests, stating the company will take “all necessary legal and commercial steps” to ensure an orderly conclusion to the current contract.