MacroAsia Corporation, taipan Lucio Tan’s airline services firm, reported that its consolidated net income soared 72 percent to P337 million in the first quarter or 2024 compared to P196 million in the comparable period last year as the industry continues to benefit from revenge travel.
In a disclosure to the Philippine Stock Exchange, the firm attributed its earnings jump to strong topline growth and sustainable cost leadership efforts.
"Following our momentum of growth in 2023, our first quarter 2024 results demonstrate further the resilience and adaptability of the MAC Group amidst challenging market conditions," said Tan's grandson, MacroAsia President and COO Eduardo Luis T. Luy.
He added that, "We remain committed to delivering exceptional services to our customers, while driving sustainable growth and value for our stakeholders, consistent with our strategy of scaling the edges of our business segments to secure more diversified revenue sources."
Revenues swelled by 24 percent to P2.22 billion during the first three months of this year, compared to P1.79 billion in the first quarter of 2023.
The significant improvement was driven largely by volume growth across all the Group’s business units.
In flight catering and food services, revenue grew 17 percent to P1.06 billion, driven by a rise in meals sold to 5.6 million in the first three months of 2024.
This segment accounts for 48 percent of the Group’s total revenues.
Ground-handling revenue rose 35 percent to P976 million from 2023, supported by a total of 49,281 flights handled during the quarter. Water operations contributed P154 million, reflecting a 12 percent increase in revenues due to volume growth in water concession accounts.
Total direct costs rose to P1.67 billion, showing a tamer 21 percent growth compared to revenue growth.
Share in net earnings of associates for the first three months of this year amounted to P148.4 million in contrast to P90.7 million last year.
The notable contributions for this account came from MacroAsia’s aircraft maintenance, repair and overhaul (MRO) joint-venture, Lufthansa Technik Philippines (LTP).
LTP reported a quarterly net income of P258.7 million, of which MacroAsia’s 49 percent share is recorded at P126.8 million.
The other associates of MacroAsia are Japan Airport Service Co., Ltd. based in Narita, Japan and Cebu Pacific Catering Services which operates in Mactan, Cebu.