Aboitiz InfraCapital Inc. (AIC) is bracing for potential headwinds to its airport business if tensions in the Middle East drag on and keep fuel prices elevated, a scenario that could begin to bite as early as June.
AIC president and chief executive officer Cosette Canilao said higher jet fuel costs may ripple through the sector via pricier tickets, route adjustments, reduced flight frequencies, and the possible trimming of less profitable services by airlines.
“We are closely monitoring the situation,” she said at a Monday briefing, noting that carriers have already begun tweaking select routes and schedules.
The warning comes even as AIC’s airport portfolio has posted strong momentum. Mactan-Cebu International Airport (MCIA) logged its highest-ever monthly passenger traffic in January, with first-quarter performance exceeding expectations.
The near-term outlook remains supported by advance bookings, suggesting limited impact on second-quarter revenues despite geopolitical uncertainty.
Still, Canilao signaled that sustained conflict could test that resilience in the latter half of the year. “We’re cautiously optimistic,” she said, adding that the company has modeled multiple traffic scenarios and is coordinating closely with airline partners.
A positive sign is the resumption of Emirates’ daily Dubai–Cebu service after earlier adjustments.
Beyond aviation, AIC’s water and digital tower businesses are expected to remain relatively insulated, given the inelastic nature of demand.
The company is focusing on cost management while pushing ahead with projects in its pipeline and exploring new partnerships.
AIC has earmarked P8.1 billion in capital expenditures this year—nearly double 2024’s P4.1 billion—excluding investments in economic estates. The spending will fund expansion and operational upgrades across its core segments.
Airports, however, remain the primary growth engine. Alongside MCIA, the Bohol-Panglao and Laguindingan airports are contributing to rising passenger volumes, stronger operating performance, and improved commercial activity.
While external risks persist, AIC is betting that travel demand—and its airport platform—will continue to underpin growth through 2026.
