MacroAsia Corp., the aviation and food services arm of taipan Lucio Tan’s business empire, signaled a cautious outlook for the remainder of the year as surging operating costs and new lease-related accruals weighed on its bottom line despite record-breaking revenue.

The firm reported a 48.5 percent decline in consolidated net income to ₱186.6 million for the first quarter of 2026 from ₱362.4 million during the same period a year earlier.

Net income attributable to equity holders of the parent fell more sharply, sliding 58.9 percent to ₱129 million from ₱313.9 million.

Profitability was dampened by lease-related accruals at the associate level, specifically involving the MacroAsia Ecozone and its primary locator, Lufthansa Technik Philippines. The initial lease term for the ecozone expired in August 2025, and the company is now adjusting to higher rental rates prescribed by the Manila International Airport Authority’s revised administrative orders.

Despite the earnings drag, Eduardo Luis T. Luy, MacroAsia president and chief operating officer, emphasized the firm’s operational scale. Consolidated revenues climbed to ₱2.63 billion, the highest quarterly performance in the company's history.

Luy attributed the top-line growth to sustained demand across core segments, noting that the results demonstrate the underlying momentum of the business even as the company moves to expand capacity and deepen customer relationships.

The company’s in-flight and institutional food business remained its largest revenue driver, contributing roughly 50 percent of the total. Revenues for the segment rose 14 percent to ₱1.31 billion. Ground-handling and aviation services, which account for 43 percent of the group’s turnover, grew 11 percent to ₱1.13 billion, mirroring an 11 percent increase in the volume of flights handled to 52,892. Water operations provided a modest two percent lift to ₱174.9 million on the back of higher commercial sales.

MacroAsia is now pivoting toward cost optimization to protect margins in the face of persistent external pressures. 
The company noted that global geopolitical tensions, particularly in the Middle East, continue to disrupt certain airline hubs and flight paths. To counter these headwinds, the firm is expanding its non-airline food business and enhancing shared services through new technology initiatives.

The group also saw a significant reduction in contributions from its associates, with its share in net income from those entities dropping by ₱166.9 million.

Its share in the earnings of Lufthansa Technik Philippines fell to ₱53.8 million, a decline the company primarily blamed on the anticipated adjustments in lease costs. 
The company stated it will continue to monitor rate finalizations while implementing measures to improve efficiency in the coming quarters. (James A. Loyola)