MacroAsia first-quarter profit falls on higher lease costs

Insider Spotlight

• Earnings decline despite record quarterly revenues
• Rising costs and lease charges pressure margins
• Aviation and catering businesses post double-digit growth
  
  
  

MacroAsia Corp., the aviation services firm chaired by tycoon Lucio Tan, posted a 59-percent drop in first-quarter attributable net income as higher lease expenses and rising operating costs offset record revenues from its aviation and food businesses.

The listed aviation and catering services provider said net income attributable to shareholders fell to P129 million in the January-to-March period from P313.9 million a year earlier. 

Consolidated net income also declined to P186.6 million from P362.4 million, while revenues reached a record P2.63 billion.

Lucio Tan

Chair and CEO, MacroAsia

Airport rental rates

In a company release, MacroAsia said weaker earnings were mainly due to lower contributions from affiliated companies, particularly Lufthansa Technik Philippines, following higher lease charges tied to revised airport rental rates. 

The company said its share in the earnings of Lufthansa Technik Philippines dropped to P53.8 million during the quarter because of higher expected rental costs covering the MacroAsia Special Ecozone.

Operating expenses rose 17 percent to P407.1 million as business activity picked up and inflation pushed up costs. Expenses directly tied to operations also increased due to expansion projects and higher airport facility charges, while talks with airline customers on possible price adjustments were still ongoing as of the end of March.

MacroAsia’s in-flight catering and food businesses remained its biggest revenue source, making up about half of total revenues and growing 14 percent to P1.31 billion. Ground-handling and aviation services contributed 43 percent of revenues and increased 11 percent to P1.13 billion as the number of flights serviced rose 11 percent to 52,892. Water operations revenues inched up 2 percent to P174.9 million.

Liquidity management

Profit margins weakened during the quarter as rising costs outpaced revenue growth.

MacroAsia ended March with total assets of P17.15 billion, up 3 percent from end-2025, while total equity stood at P9.35 billion. Its debt levels increased as the company borrowed more from banks to fund expansion projects and equipment purchases, although it said cash flow remained sufficient to cover interest payments.

“We remain focused on disciplined capital allocation, prudent liquidity management, and operational efficiency. Our ongoing investments are intended to position the Group for sustainable long-term growth and enhanced shareholder value,” MacroAsia president and chief operating officer Eduardo Luis T. Luy said. —Princess Daisy C. Ominga | Ed: Corrie S. Narisma