MCIA posts 25% hike in revenues to P2.7B

Carlo Lorenciana

THE Mactan-Cebu International Airport (MCIA) saw its revenue rise 25 percent in the first nine months of 2019 to P2.7 billion, driven by robust passenger volume and commercial business.

Revenue from the share of passenger service charge rose 23 percent, as passenger volume remained healthy, while airport merchandising improved 15 percent.

“The opening of the initial renovated areas in Terminal 1 added 2,200 square meters (sq.m) to our total commercial gross leasable area (GLA) this year,” said Edgar Saavedra, chairman and chief executive officer of Megawide Construction, in a statement Friday, Nov. 15, 2019.

The Phase 2 of the airport’s renovation which includes the construction of the Airport Village is set to be completed next year.

“It will add 2,200 sq.m. more of GLA. All of these will provide the base for stronger non-aero revenues moving forward,” said Saavedra.

Megawide sees its transport-oriented assets, including the MCIA, further thriving in 2020.

Saavedra noted that airport operations would continue to benefit from the company’s “strategic marketing and route development initiatives and the continuous improvements in Cebu’s infrastructure and landport commercial operations reaching full capacity.”

From January to September 2019, the international passengers grew 10 percent while domestic passengers increased nine percent to deliver a combined 10 percent growth year-on-year to 9.48 million passengers.

International passenger volume posted a record level of 1.1 million in the third quarter, with August recording the highest number of international passengers to date at 402,763.

Air traffic volume likewise cruised to a six percent improvement, with international and domestic traffic up nine percent and five percent, respectively.

New flights

During the period, new flights were commissioned from MCIA, which included Philippines Air Asia’s Cebu-Kaohsiung, Pan Pacific’s charter Qingdao-Cebu, Jeju Air’s Cebu- Daegu route, and the re-launch of Cebgo’s Cebu-Busuanga route.

International airlines likewise increased flight frequencies in the third quarter, including China Eastern’s Cebu-Guangzhou and Eva Air’s Taipei-Cebu. Jin Air, meanwhile, increased its capacities for the Busan-Cebu amd Incheon-Cebu route.

Non-aero or commercial revenues increased by 29 percent, while aero-related revenues jumped 19 percent.

Full operations of commercial spaces at the newly opened Terminal 2 and the first phase of Terminal 1 renovations drove the non-aero segment, while higher air traffic boosted the aero-related side.

GMR-Megawide Cebu Airport Corp., the private consortium operating the MCIA, took over the country’s second busiest air hub in 2014.