MCIA revenues up 23% at P2.3 billion in 2017

CEBU, Philippines — Revenues from operations of the Mactan-Cebu International Airport remain solid, as growth looks robust with the opening of its Terminal 2 this year.

In a disclosure to the Philippine Stock Exchange, Megawide Construction Corp, the airport's private operator together with Bangalore-based GMR Infrastructure Ltd, said MCIA registered P2.3 billion of revenues in 2017, a 23 percent increase year-on-year from P1.9 billion, driven by a double-digit increase in passenger throughput of 12 percent.

This was propelled by strong international and domestic passenger traffic growth of 24 percent and 7 percent, respectively, the firm said.

For the fourth quarter of 2017, airport revenues grew by 17 percent to P575 million.

The airport operations segment posted a 24 percent rise in net income to P1.1 billion relative to 2016 representing 50 percent of consolidated net earnings of the company.

In terms of airport revenue breakdown, non-aero or commercial revenues accounted for 31 percent of the total which rose by 36 percent to P723 million. Meanwhile, revenues from passenger service charges went-up by 16 percent to P1.3 billion representing 56 percent of total airport revenues. The remaining 13 percent came from aero-related revenues which grew by 27 percent to P295 million.

Megawide chairman and CEO Edgar Saavedra said: “The increase in passenger numbers at Mactan-Cebu International Airport (MCIA) is substantial. When we took over operations in 2014, MCIA was handling about 6.5 million passengers.

In 2017, we had a total of 9.97 million passengers with domestic passengers representing 69 percent of the total and international passengers at 31 percent.”

GMR-Megawide Cebu Airport Corp (GMCAC) was able to add 12 international routes including seven destinations to and from Chinese cities, new direct flight to Bangkok and Kuala Lumpur, and additional flights to 23 domestic destinations.

To date, MCIA serves 35 domestic and 22 international destinations.

Saavedra said: “As we continue to promote Cebu as a tourist hub and with the opening of MCIA’s Terminal 2, we are confident on the steady growth trajectory of our airport business. We also continue to explore opportunities to expand the same.”

The company is on-track to open the 2nd Terminal of MCIA by June 2018.

This will increase total terminal capacity to 12.5 million passengers per annum. As of end 2017, Megawide’s recurring income base accounts for half of the total earnings mainly contributed by the airport operations.