Aviation recovery lifts MacroAsia profit

MANILA, Philippines — Aviation support service provider MacroAsia Corp. doubled its profit to nearly P600 million in the nine months to September, benefiting from the upswing in air travel and the expansion of its water business.

In a disclosure to the Philippine Stock Exchange, MacroAsia said its net income jumped to P578.77 million from January to September, from P259.55 million a year ago.

Revenue went up by 79 percent to P5.74 billion on an across the board growth in all of its segments, offsetting the 65 percent spike in expenses to P4.38 billion.

MacroAsia handled 134,750 flights during the period, rising by 43 percent as airlines required additional support with demand for air travel normalizing. The company attributed half of its revenue to in-flight services, while 39 percent came from ground handling.

MacroAsia served 17.02 million meals as of September, from 10.09 million during the same period in 2022, an indication that more travelers are flocking to planes. The company also raised its revenues from ground handling to P2.26 billion, driven by the growth of airport activities.

Apart from its core business, MacroAsia operates a number of water concessions that contributed eight percent to its revenue.

Between January and September, the company grew its water earnings by 27 percent to P456.23 million, gaining from increased billings in Boracay as a result of the tourism boom in the island.

For the remaining months of the year, MacroAsia said it can bolster its financial position by taking advantage of the surge in air travel.

Further, the company is starting to introduce its food services to non-airline clients to widen its revenue sources. This is expected to help MacroAsia improve its financial standing given that its non-aviation ventures, particularly water, are beginning to profit.

Down the line, MacroAsia will invest in the delivery of new hangars outside of Manila, likely in Clark, through its subsidiary, Lufthansa Technik Philippines. LTP will spend at least P15 billion to build new bases for aircraft maintenance, repair and overhaul.

The first phase of the project will cover the construction of hangars that can cater to the needs of wide-body jets like Airbus A380s and Boeing 777s.

MacroAsia controls a number of firms mainly engaged in aviation services like ground handling, in-flight catering and pilot training.