MANILA, Philippines — MacroAsia Corp. of airline and tobacco magnate Lucio Tan has banked on the recovery of travel activities to record its second consecutive quarter of profit, believing that growth can be sustained with airlines climbing back to their pre-pandemic capacities.
MacroAsia reported a 27 percent rise in earnings to P194.7 million in the third quarter from P152.89 million in the same quarter last year, proving that the aviation industry is picking up speed with border controls removed.
From July to September, MacroAsia saw its revenue nearly triple to P1.4 billion, while spending more than doubled to P1.09 billion on increased volume of flights that it had to service.
For the year, MacroAsia has flipped to a net income of P259.55 million as of September from a net loss of P371.51 million during the same period last year.
Even as expenses ballooned by 88 percent to P2.65 billion, total revenues outpaced this by growing over twice to P3.21 billion.
In-flight and other catering services booked a fourfold growth to P1.47 billion in the nine months to September.
Likewise, income from ground handling and aviation jumped by 75 percent to P1.33 billion with airlines submitting their planes for maintenance, repair and overhaul (MRO).
“Passenger loads and flight frequencies of airlines are the two most important factors that affect the revenue levels of the group’s operating units which are involved in catering, ground handling and line maintenance,” MacroAsia said.
“The group constantly monitors these two factors that directly impact on revenues and costs,” it added.
Unlike in 2020 and 2021 when COVID-19 quarantine restrictions were most stringent, MacroAsia said that 2022 is proving to be the year when air travel is starting to make a comeback, especially with the lifting of travel regulations worldwide.
The listed company said that domestic travel volume in and out of Manila has already reached pre-pandemic levels.
Likewise, it added that international travel volumes are slowly ramping up with airlines increasing their flight schedules.
“As strict travel measures have gradually eased up, resulting into growing volumes of travelers, the aviation services companies within the group have started expanding their capacity to meet the airport requirements. However, our cash conservation and cost-control measures continue in some other areas,” MacroAsia said.