MacroAsia Corp., the aviation services arm of the Lucio Tan (LT) Group, reported strong 2025 earnings growth and remains cautiously optimistic on its recovery this year amid the threats posed by the Middle East conflict.

The firm informed the Philippine Stock Exchange (PSE) on Tuesday, April 7, that it sees continued recovery of aviation demand, supported by improving passenger traffic trends and expansion opportunities in both aviation and non-aviation segments.

“At the same time, the company is closely monitoring geopolitical risks arising from the ongoing Iran and broader Middle East conflict, which may impact the global aviation sector,” MacroAsia said.

MacroAsia President and Chief Operating Officer (COO) Eduardo Luis T. Luy said that, “While we remain mindful of geopolitical uncertainties, including developments in the Middle East, our limited direct exposure, strong balance sheet, and disciplined execution position us well to navigate these risks and capture growth opportunities.”

The company identified risks such as the potential airspace restrictions and route diversions, increased jet fuel prices driven by supply uncertainties, flight frequency adjustments by airlines operating in affected regions, and the broader impact on travel demand sentiment.

MacroAsia noted that its revenue resiliency has grown during the Covid-19 pandemic, such that substantial topline contributors are non-airline related business activities like food and commissary operations as well as water utilities and concessions outside of Metro Manila.

While exposure to Middle East routes for its aviation services represents only a limited portion of MacroAsia’s airline client base and revenues, the company recognizes the potential second-order effects, particularly through fuel cost volatility and airline capacity adjustments for all business segments.

To address these risks and sustain performance, the firm said it is proactively implementing measures such as its continued focus on expanding relationships with airlines across Asia-Pacific and other resilient markets to reduce concentration risk. Its strategy of growing topline sources outside of the airport areas shall be intensified.

It will also enhance operational flexibility, such as its ability to scale operations in response to airline traffic and schedule changes, ensuring efficient deployment of manpower and assets.

It will also implement cost management and efficiency programs and strengthen non-aviation revenue streams through the expansion of institutional catering, food commissary operations, and other non-airport businesses to provide earnings stability.

MacroAsia reported a 17-percent increase in consolidated net income to ₱1.61 billion last year, underpinned by sustained recovery in aviation activity, robust contributions from associates, and a notably strong fourth-quarter finish.

Attributable net income rose 28 percent to ₱1.44 billion, reflecting improved earnings quality and stronger equity income contribution.

Consolidated revenues grew six percent to ₱9.96 billion, supported by higher volumes across the group’s core aviation support services and food-related businesses.

Growth was driven primarily by in-flight catering, ground handling, and aviation services as airline traffic continued to normalize.

A key earnings driver remained the company’s share in net earnings of associates, which more than doubled to ₱1.47 billion, highlighting the strength of its strategic investments in aviation and related sectors.

“Fiscal year (FY) 2025 reflects MacroAsia’s ability to deliver solid earnings growth while continuing to invest in capacity, service quality, and long-term strategic initiatives,” said Luy.

He noted that, “Our strong fourth-quarter performance demonstrates the resilience of our operating platform and the benefits of our diversified portfolio, particularly our strategic investments in associates.”