But at least it has no cash problems like its sister firm, Philippine Airlines, which is expected to file for bankruptcy.
“The group foresees that within the next twelve (12) months, it will have no cash flow or liquidity problems despite the impact of the quarantine restrictions and business downturn. Before the pandemic, the group built up its cash reserves through its operating revenues and collections,” said MAC.
While its earnings before interest and taxes were not enough to cover interest expenses in the first quarter, MAC said it has more than enough cash to pay for its loans.
MAC reported P284.5 million in losses from January to March this year, from a P17.59 million profit during the same period last year. Macroasia lost P1.8 billion in 2020, a turnaround from its P1.1 billion profit in 2019.
Revenues cratered by 71 percent to P397.38 million in the first quarter of 2021 from P1.371 billion a year ago.
MAC said its core businesses were all in the red. Earnings from in-flight catering, which accounted for a third of its revenues, plummeted 80 percent to P131.29 million in the first three months as volume of meals served shrank to 577,663 in the first quarter, from 3.333 million during the same period last year.
Ground handling and aviation services also plunged 65 percent to P410 million in the first quarter with the number of flights falling 16,889 from 45,547 a year go.Its aviation associates also posted a net loss of P78 million in the first quarter.
“The group has been impacted during the reporting period by the COVID-19 pandemic as flights were cancelled and airport traffic movements were constrained to contain the spread of the COVID-19 virus. At certain periods during the quarantine period, airline catering meal volumes and flight turnarounds were reduced by more than 90% of normal, starting second half of March 2020,” said MAC.
“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 added.
MAC’s non-aviation business also fared poorly during the first three months – water utility revenues dropped 57 percent to P36.32 million; and its aviation school earnings fell 44 percent to P5.8 million.