Lucio Tan’s aviation services unit MacroAsia Corporation reported that its consolidated net income soared 667 percent to P382.2 million for the first half of 2023 from the P49.8 million earned the same period in 2022 on the back of revenge travel.
In a disclosure to the Philippine Stock Exchange, the firm said its topline more than doubled to P3.71 billion in the first half of 2023 from P1.82 billion in the same period last year.
It noted that second quarter revenues rose to a record P1.9 and added the first quarter revenues of P1.8 billion.
Food services accounted for 51 percent of the second quarter revenues while ground-handling contributed 40 percent. A total of P413 million or 22 percent of the second quarter revenues are not related to aviation activities, as the group diversified its revenue portfolio during the pandemic period.
The second quarter of 2023 net income grew to P186.2 million from P101.8 million in the same period last year due to business volume growth in almost all the operating subsidiaries.
For the first half in 2023, revenues from in flight and other catering posted a substantial 143 percent increase, from P775.52 million in 2022 to P1.88 billion.
The improvement is driven by the 98 percent volume growth in meal sales, from 5.62 million in the first half of 2022 to 11.11 million this the same period of 2023.
In the second quarter, meal volume totaled 5.65 million, an increase of 65 percent and four percent compared to the second quarter of 2022 and first quarter of 2023, respectively.
Beyond the airport and planes, MacroAsia-made food products are also available to consumers in various client establishments like banks, schools, QSRs, warehouses and the like.
Ground-handling and aviation services had revenues at P1.49 billion in 2023 compared to P776.57 million in 2022. This is an increase of 91 percent, attributable mainly to flight volume growth in the airports and new client acquisitions.
Flights handled increased 57 percent from 56,455 in 2022 to 88,468 in the current year. Second quarter 2023 flights handled totaled 44,412 which is 34 percent and one percent higher than the second quarter of 2022 and first quarter of 2023, respectively.
The aviation training school recorded revenues of P38.48 million in the first half of 2023 which is 99 percent higher than the first half 2022 revenue of P19.31 million.
However, due to delays in training activities due to various aircraft issues in the early part of the year, the school still reported losses amounting to P18.66 million for the first half of 2023, better than the P30.40 million net loss in the same period of 2022.
Revenues from the water segment increased 25 percent. Commercial water sales in Boracay Island grew, and new accounts continued to boost billed volumes in other areas such as Cavite and Nueva Vizcaya.
Share in net income of associates declined to P135.90 million in 2023 from P102.62 million. This represents MAC’s share in the net operating result of its associated companies such as Lufthansa Technik Philippines, Japan Airport Services Co., and Cebu Paci c Catering Services.
Lufthansa Technik Philippines’ maintenance, repair and overhaul (MRO) business is temporarily impacted by the closure of one of its hangar for modification to handle additional A380 business, compounded by the loss of specialist mechanics who sought employment abroad.
The capacity constraint for LTP is expected to be addressed towards the later part of this year, as the hangar upgrading is seen to be completed.
The ground-handling business of JASCO in Narita has been recovering slowly, as the China travel market which is a staple for Japan tourism has not completely opened up.
Cebu Pacific Catering Services, the lone inflight caterer in Cebu resumed its catering operations only in March 2023 as travel volumes in Mactan, Cebu started to return.