The Competition Regulatory Authority (ARC) has fined Mozambique Airlines (LAM), the national flag carrier, 11,109,738.05 meticais (approximately $170,000) for unlawfully charging a fuel surcharge and for obstructing an official investigation.

According to the ARC, LAM applied to domestic flights a surcharge originally created to offset fuel price fluctuations on international routes, even after the Government banned the practice in 2021. In some cases, the surcharge accounted for as much as 60% of the ticket price. One example cited by the regulator showed that on a ticket costing 10,000 meticais ($160), roughly 6,000 meticais (plus$90)corresponded solely to the surcharge.

The regulator stated that there was no legal or accounting basis for the charge, accusing LAM of misrepresenting the real ticket price, financially harming passengers, and abusing its dominant market position.

In addition, LAM allegedly failed to provide documents and information requested during the investigation. The ARC claims the surcharge was maintained to boost revenue and cover operational and social responsibility costs, such as fuel and staff salaries.

The fines include 8,332,303.54 meticais for the illegal surcharge and 2,777,434.51 meticais for failing to cooperate with the investigation.

LAM must pay the penalty within 15 days and remove the surcharge within two months. The case has been referred to the Attorney General’s Office, which may take further action if additional irregularities are uncovered.