NAIA lease hike bites into MacroAsia’s 6-month income

MANILA, Philippines —  Higher lease rates and the termination of a high-value service at the Ninoy Aquino International Airport caused financial damage to MacroAsia Corp. as  its profit declined by 34 percent in the first half.

Based on its financial report, MacroAsia said its net income fell to P449.6 million in the January to June period, from P679.7 million a year ago, due to cost pressures sustained by its largest contributor.

Further, net share from associates dipped by 25 percent to P456.1 million, as Lufthansa Technik Philippines (LTP) took a double whammy during the period.

LTP cut its equity share to MacroAsia by 24 percent to P411.2 million, as its new lease in NAIA entailed paying higher rates. On top of this, LTP discontinued its line maintenance in NAIA after long-time client Philippine Airlines opted to rely more on in-house capabilities.

Given this, MacroAsia president and chief operating officer Eduardo Luis Luy said the company would focus on improving margins in the second half. This means raising productivity levels to recover spiking costs and more aggressive collections to free up financial pressure.

“MacroAsia continued to generate revenue growth across its key operating businesses during the first half of 2026, notwithstanding higher operating costs and impact of lower associate earnings on first half profitability,” Luy said.

“For the balance of the year, our priorities are to improve our margins through cost recovery and operating efficiencies, strengthen cash conversion and maintain disciplined execution of growth investments,” he added.

In spite of the profit reduction, MacroAsia is leaning on the strength of its core services to keep it profitable, and it looks to capitalize on the usual surge in air travel during the holiday season to increase revenue.

MacroAsia grew its revenue by nine percent to P5.26 billion, driven by the 12-percent increase in earnings from in-flight meals to P2.63 billion. It also raised ground handling revenues by eight percent to P2.25 billion, with volume picking up by two percent.

MacroAsia’s non-aviation segments also chipped in, as revenues from water operations hit P369 million due to a 15-percent hike in billed volume. MacroAsia is expanding its non-core services to diversify the revenue base.

However, MacroAsia also spent 13 percent more to P4.22 billion, recognizing price hikes triggered by economic challenges like the Middle East conflict.

The geopolitical conflict in the Middle East hit the aviation industry the hardest, as it caused jet fuel prices to surge and the temporary closure of several corridors.