Listed aviation services provider MacroAsia Corp. — whose portfolio spans in-flight catering, ground handling, water operations, and aircraft maintenance — posted a 67.7% year-on-year drop in third-quarter attributable net income, which fell to P110.78 million from P342.63 million, as rising operating costs and softer revenues weighed on earnings.

Gross revenues for the July-to-September period declined 3.9% to P2.49 billion from P2.59 billion a year earlier, according to the company's financial disclosure issued on Wednesday.

"MacroAsia's underlying businesses remain resilient, as reflected in our continued revenue growth across food services, ground handling, and water operations. The decline in third-quarter earnings was partly attributable to transient input costs associated with global inflationary factors," MacroAsia President and Chief Operating Officer Eduardo Luis T. Luy said in a statement.

He attributed part of the earnings decline to restructuring costs at Lufthansa Technik Philippines, Inc. (LTP), an associate of MacroAsia, alongside higher lease rates at the MacroAsia Special Economic Zone. LTP is a joint venture between Germany-based Lufthansa Technik AG and MacroAsia, which is part of the Lucio Tan Group.

Nine-Month Performance

For the first nine months of 2026, MacroAsia's attributable net income declined 45.2% to P560.38 million from P1.02 billion in the same period last year, as higher expenses and lower earnings contributions from associates offset revenue growth.

Consolidated revenues rose 4.7% to P7.76 billion from P7.41 billion, while gross expenses climbed 8.8% to P7.63 billion from P7.02 billion, expanding at nearly twice the pace of revenues. Consolidated net income, which includes earnings attributable to noncontrolling interests, fell 42.3% to P669.62 million from P1.16 billion.

The company traced the increase in costs to higher raw material prices and other operating inputs, the full-period impact of earlier wage adjustments now carried across the entire reporting period, and increased airport-related lease and facility charges.

MacroAsia's share in the net earnings of associates dropped 29.8%, mainly reflecting lower contributions from LTP and Japan Airport Service Co., Ltd. According to the company, LTP's earnings were affected by higher recurring lease costs under revised arrangements and restructuring expenses tied to the discontinuation of its line maintenance operations — the routine servicing aircraft undergo between flights.

Segment Highlights

Among MacroAsia's operating businesses, in-flight and other catering services accounted for the largest share of revenues, followed by ground handling and aviation services. Ground handling and aviation revenues reached P3.28 billion in the first nine months, while water operations generated P569.7 million — the smallest of the disclosed contributors, though the segment with two capacity projects in the pipeline.

The company's catering operations continued to benefit from higher meal volumes, although rising input costs weighed on margins.

MacroAsia said it is implementing measures to improve operating efficiency and manage expenses across its aviation-related businesses. "Our aviation-related business units are implementing adjustments toward a more efficient and sustainable operating structure," Mr. Luy said.

Expansion Pipeline

Meanwhile, the company is pursuing expansion projects in its water, food services, and aircraft maintenance businesses.

Its 20-million-liter-per-day seawater desalination plant in Punta Engaño, Cebu, is targeted to begin commercial operations by the end of 2026. MacroAsia is also developing a P2-billion surface water and transmission line project in Pototan, Iloilo, with a capacity of 50 million liters per day.

In its food services business, the company's P1.2-billion commissary in Muntinlupa is expected to be completed in the first quarter of 2027. Separately, LTP's planned 157,000-square-meter aircraft maintenance complex in Clark, Pampanga, is targeted to begin initial operations by 2028 — an expansion of the joint venture's maintenance footprint even as it discontinues line maintenance.

With completion targets spanning late 2026 through 2028, the projects lay out a timeline of operational milestones as MacroAsia broadens its footprint beyond aviation services into water infrastructure and food production capacity.

At the local bourse on Wednesday, shares in MacroAsia rose six centavos, or 1.82%, to close at P3.36 apiece. — Ashley Erika O. Jose