Revenge travel to put MCIA on a huge upside

·3 min read

MEGAWIDE Construction Corp. is already seeing initial signs of recovery in its airport asset the Mactan-Cebu International Airport (MCIA).

The company told the local bourse Friday, April 22, 2022, that traffic for the first two months of the year showed a 170 percent improvement from the same period in 2021, according to the data from the Mactan-Cebu International Airport Authority.

“The International Air Transport Association predicts that global air travel will be 80 to 90 percent of its pre-pandemic levels this year and next, with prospects of exceeding 2019 figures by 2024. That being said, this revenge travel should present a huge upside to MCIA, which currently operates at 20 to 30 percent of pre-Covid levels,” said Louie Ferrer, Megawide’s executive director for Infrastructure Development and GMR-Megawide Cebu Airport Corp.’s president.

In anticipation of the global tourism revival, MCIA has partnered with Emirates and Turkish Airlines to gain access to Europe and the Middle East. Both airlines are expected to augment the predominantly Asian tourist market in Cebu as the former flies daily while the latter follows a thrice-a-week schedule.

Carbon redevelopment in full swing

Megawide also disclosed that its Carbon Market redevelopment is in full swing, with the interim market completed and now welcoming vendors.

The Sto. Niño Chapel and Statue was likewise officially consecrated in a ceremony held during the celebration of Easter Sunday last April 17, 2022.

“Carbon Market will be a game-changer not only for Cebu but for public market districts around the country. Not only does this modernize and refurbish the age-old system and structure in the province, it will also refresh the neighborhood into a modern-day tourist attraction,” said Ferrer, who also serves as the president of Cebu2World Development Inc. (C2W).

Phase 1 is scheduled to be completed by 2027, which will transform Carbon Market into a multistructure facility, having a fully built up gross leasable area of approximately 50,000 square meters, spread across the public market, commercial centers, and bayfront areas for vendors, business partners, trade participants, consumers and tourists to enjoy.

Earnings

The company ended 2021 with a consolidated revenue of P15.4 billion in 2021, 21 percent higher year on year, amid a persistent Covid-19 pandemic.

The construction segment rallied the group and recorded revenues of P14.3 billion, 32 percent more than the previous year.

The airport and land port businesses, on the other hand, continued to be affected by restricted travel and transport as well as limited economic activities, resulting in weaker financial performances.

Consolidated earnings before interest, taxes, depreciation and amortization amounted to P2.84 billion as airport operations generated losses.

With a more stable operating environment, the construction segment recorded a net income of P401 million and more than four times the P93 million income posted in the previous year.

However, weak results from the other business segments resulted in a consolidated net loss of P893 million, with a net loss attributable to equity holders of the parent tapering to P343 million.

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