Higher lease costs weigh down on MacroAsia results

MacroAsia Corp. of Lucio Tan’s group saw its bottom line shrink in the first nine months of 2026, weighed down by restructuring expenses at associate Lufthansa Technik Philippines Inc. (LTP), higher lease charges and inflation-driven operating costs.

In a disclosure on Wednesday, the company said its net income attributable to equity holders had fallen 45.2 percent to P560.4 million from January to September, compared with P1.02 billion a year earlier.

Consolidated net income likewise declined 42.3 percent to P669.6 million from P1.16 billion.

The steep earnings downturn came despite MacroAsia growing its revenues by 4.7 percent to P7.76 billion from P7.41 billion. This was supported by gains across its food services, ground handling and aviation support, and water operations businesses.

However, direct costs climbed faster than revenues, rising 8.6 percent to P6.36 billion, while operating expenses increased 9.5 percent to P1.28 billion.

Consequently, its gross profit margin narrowed to 18 percent from 21 percent.

MacroAsia also reported a 29.8-percent decline in its share of earnings from associates to P680.9 million, primarily reflecting weaker contributions from LTP and Japan Airport Service Co.

At LTP, restructuring expenses stemmed from the discontinuation of line-maintenance operations, alongside higher recurring lease charges under revised arrangements at the MacroAsia Special Economic Zone near Ninoy Aquino International Airport.

While the restructuring costs are considered temporary, the company said higher lease expenses would remain an ongoing burden.