06 July, 2018

LAM cancelled flights because it couldn't pay for fuel.

The entire board of LAM, the national airline of Mozambique has been sacked following the cancellation of flights earlier this week that left hundreds of passengers stranded, including Mozambique's Prime Minister Carlos Agostinho do Rosario. 

The airline has been struggling for some time and cancelled the flight's blaming its dire financial situation and the inability to pay for fuel to keep its aircraft in the air. The airline owes BP over $3million for fuel which turned off the supply to the airline for non-payment. However, the airline disputes this and said BP was stockpiling fuel, either way, the airline is now working with Puma Energy, on a prepayment basis. 

Flying resumed on Friday and it is understood that a full normal schedule would operate over the weekend, however, the long-term future for the carrier looks very uncertain.  In it most recent accounts, LAM reported a loss of $67.5 million.