MacroAsia incurs net loss in Q1

MANILA, Philippines — Lucio Tan-led MacroAsia Corp. incurred a net loss in the first quarter due to the continued negative impact of the pandemic on its business segments.

MacroAsia reported a net loss of P284.36 million in the three months ending March, a turnaround from the P17.59 million net income in the same period last year.

“The core business segments of the group continue to be impacted by the downturn in air travel due to COVID-19-related quarantine and airport restrictions since the onset of the pandemic, but are already showing slow recovery,” the company said.

Revenues from in-flight catering, which contributed 33 percent of the total revenues, plunged to P131.29 million in the first quarter from last year’s P639.85 million.

MacroAsia attributed the sharp drop to the decrease in the number of meals served to airline clients.

Ground-handling and aviation services revenues also fell to P216.73 million from P626.68 million as flights handled declined by 63 percent year-on-year.

MacroAsia, however, said the number of flights and meals served are slowly improving as travel and safety protocol restriction measures are slowly eased.

“The strict travel measures have gradually eased up as of this report date as more flights and travel are being allowed in key airports to help stimulate the economy,” it said.

MacroAsia said the management teams of its aviation services companies have instituted cash conservation and cost-control measures to cope with the ensuing crisis and business downturn.

It said business recovery of the aviation service units would follow the track of the airline and tourism industries that will benefit from the easing up of quarantine and travel restrictions in the country and elsewhere.

“The group foresees that within the next 12 months, it will have no cash flow or liquidity problems despite the impact of the quarantine restrictions and business downturn,” the firm said.

MacroAsia said the group has built up its cash reserves through its operating revenues and collections before the pandemic.

It said investments in non-aviation related business are currently being undertaken to increase the revenue pipeline in the coming months.