The Lucio Tan Group company earned P560.4 million from January to September 2026, down from P1.02 billion a year earlier, even as revenues climbed 4.7 percent to P7.76 billion.
The downturn worsened in the third quarter, when consolidated profit plunged 68 percent to P123.1 million from P384.3 million a year earlier, while revenues slipped 3.9 percent to P2.49 billion.
Management’s view
“MacroAsia’s underlying businesses remain resilient, as reflected in our continued revenue growth across food services, ground handling, and water operations,” said MacroAsia president and COO Eduardo Luis T. Luy said in a statement on Wednesday.
“The decline in third-quarter earnings was partly attributable to transient input costs associated with global inflationary factors as well as transitory restructuring costs at Lufthansa Technik Philippines as we adjust to higher lease rates within the MacroAsia Special Economic Zone,” he said.
“While cost pressures remain, we are confident that our diversified businesses, ongoing efficiency measures, and strategic investments will position MacroAsia for progressive margin recovery and stronger long-term earnings. Our priority remains clear: protect profitability, maintain financial discipline, and create sustainable value for our shareholders,” Luy added.
PAL maintenance shift hits earnings
Part of the pressure came from Lufthansa Technik Philippines (LTP), a joint venture in which MacroAsia owns 49 percent, after longtime customer Philippine Airlines decided to handle more routine aircraft maintenance work itself.
That prompted LTP to discontinue its line-maintenance operations in August, ending a business that provided quick inspections and servicing needed to keep aircraft flying between scheduled trips.
The closure brought restructuring expenses that MacroAsia considers temporary, but LTP is also grappling with higher rental charges at its facilities near Ninoy Aquino International Airport that will continue beyond the transition.
New investments in Clark
LTP is retaining its larger aircraft repair business in Manila and expanding in Clark, where it broke ground in August on a 157,000-square-meter maintenance complex designed to handle more extensive inspections, repairs and overhauls of large passenger aircraft.
The new facility, which is expected to create around 1,200 skilled jobs and begin operations in 2028, will expand LTP's capacity rather than replace its existing Manila operations.
The restructuring and higher lease costs, together with weaker earnings from Japan Airport Service Co., contributed to a 30-percent drop in MacroAsia's share of profits from affiliated companies to P680.9 million.
Higher costs eat into sales growth
Beyond aircraft maintenance, MacroAsia's direct costs jumped 8.6 percent, nearly twice as fast as revenues, as wage increases, raw materials and airport-related charges squeezed profitability.
Food services, which now account for about half of revenues, grew 9 percent to P3.87 billion as meal production climbed 19 percent, supported by customers outside the airline industry.
Airport ground handling revenues increased 5 percent to P3.28 billion despite servicing fewer flights, while water operations grew 6 percent to P569.7 million on higher demand and more customer connections.
MacroAsia is also investing P1.2 billion to expand its food production facility in Muntinlupa, targeting completion in early 2027 and enough capacity to prepare 90,000 meals daily.
—Edited by Miguel R. Camus
