MANILA, Philippines — Aboitiz InfraCapital is getting more time to recover its massive investment in the Mactan-Cebu International Airport just as stronger passenger traffic is helping turn its airport business into the biggest driver of the infrastructure unit’s financial recovery.
The Philippine government’s Economy and Development Council approved an extension of the Mactan-Cebu International Airport (MCIA) concession period, giving Aboitiz InfraCapital Cebu Airport Corp. a longer window to recover investments and finance additional improvements.
Under the approved contract variation, the concessionaire has committed to nearly ₱15 billion in capacity augmentation and capital investments for the airport. The government said the longer concession is intended to support airport improvements, restore and expand domestic and international routes, improve passenger transfers and reduce pressure to raise passenger service charges.
The timing is significant.
MCIA passenger traffic has been growing, and the airport business has emerged as the strongest contributor to Aboitiz InfraCapital’s improving financial performance.
AIC’s Loss Nearly Halved
Aboitiz InfraCapital, the infrastructure arm of Aboitiz Equity Ventures, generated ₱4.6 billion in revenue during the first half of 2026, a 30% increase from ₱3.5 billion a year earlier.
EBITDA rose 26% to ₱2.5 billion.
More importantly, AIC reduced its net loss to ₱278 million, compared with a ₱536-million loss in the first half of 2025 — an improvement of about 48%, or roughly the 47% reduction highlighted in the Bilyonaryo report.
The improvement came even as the infrastructure portfolio continues to absorb noncash amortization associated with the MCIA service concession asset.
That accounting charge is important because it helps explain why a business whose operating performance is improving can still report a consolidated net loss.
MCIA Is Doing the Heavy Lifting
The airport business was the standout performer.
AIC said airport revenue jumped 38% year-on-year to ₱3.4 billion in the first half, while airports accounted for about 65% of beneficial EBITDA.
MCIA was the principal contributor.
Passenger traffic at Mactan-Cebu reached 6.47 million in the first half of 2026, up 9% year-on-year, according to Aboitiz’s earnings-call presentation.
Across AIC’s airport portfolio — which includes MCIA, Laguindingan International Airport and Bohol-Panglao International Airport — passenger traffic reached 8.6 million, up 4%.
That growth is particularly important because AIC has been building a broader airport portfolio.
Laguindingan and Bohol-Panglao only became part of the company’s operating portfolio in 2025, meaning their contributions are still developing compared with the more mature MCIA operation.
The Government Just Gave Aboitiz More Room to Invest
The MCIA concession extension is more than a contractual adjustment.
It is designed to give Aboitiz a longer period over which it can recover the capital being invested into the airport.
Under the revised arrangement, Aboitiz InfraCapital Cebu Airport Corp. will commit nearly ₱15 billion for capacity expansion and other capital investments.
The government said those investments are expected to support:
- restoration of domestic routes;
- expansion of international routes;
- additional airport capacity;
- smoother airport transfers; and
- improvements designed to accommodate growing passenger demand.
The longer concession period is also intended to reduce pressure to increase passenger service charges as the airport finances the upgrades.
Aboitiz Didn’t Start With a Fresh Airport Concession
The history of MCIA’s private operation helps explain why the extension matters.
The original private concession was awarded in 2014 to the GMR-Megawide consortium under a 25-year agreement to develop, operate and maintain the airport.
Aboitiz InfraCapital entered the airport venture in 2022.
It subsequently completed its acquisition of full ownership of the airport operating company in 2024, after which the operator became Aboitiz InfraCapital Cebu Airport Corp.
The original concession involved the development of MCIA’s Terminal 2, which opened in 2018 and significantly expanded the airport’s international passenger capacity. The World Bank’s PPP case study identifies the project as a 25-year concession with a potential 10-year extension.
The latest government decision provides the framework for that longer investment-recovery period, although the recent announcements do not specify a new final expiration date.
The Airport Is Becoming Aboitiz InfraCapital’s Growth Engine
AIC operates across three major infrastructure areas: airports, water and digital infrastructure.
But airports have increasingly become the portfolio’s main growth engine.
During the first half of 2026, airports contributed about 65% of AIC’s beneficial EBITDA, while MCIA remained the largest and most mature asset in the airport portfolio.
Company executives said MCIA continues to be the primary contributor to the airports business, while the company is working on route development, destination marketing and commercial opportunities at Bohol-Panglao and Laguindingan.
That creates an interesting growth equation for AIC.
MCIA is already generating stronger passenger volumes, while the newer airports still have room to mature.
Aboitiz Is Building an Airport Network, Not Just One Gateway
The strategy is becoming broader than Cebu.
Aboitiz InfraCapital currently operates three airports:
Mactan-Cebu International Airport in Cebu, Laguindingan International Airport in Misamis Oriental, and Bohol-Panglao International Airport in Bohol.
Aboitiz’s 2025 annual report describes MCIA as the country’s second-busiest airport, with Laguindingan and Bohol-Panglao ranking among the country’s other major gateways.
That portfolio gives AIC exposure to several of the Philippines’ most important tourism and regional-business markets.
Cebu, in particular, remains a major tourism, business and international connectivity hub.
More passengers mean more than aeronautical revenue. Airports can also generate income from retail, food and beverage, parking, advertising, commercial leases and other passenger-related activities.
The Numbers Show Why MCIA Matters
The improvement in AIC’s results becomes clearer when the figures are placed side by side.
First half of 2025 vs. first half of 2026:
- AIC revenue: ₱3.5 billion → ₱4.6 billion
- AIC EBITDA: ₱2.0 billion → ₱2.5 billion
- AIC net loss: ₱536 million → ₱278 million
- Airport revenue: up 38% to ₱3.4 billion
- MCIA passenger traffic: up 9% to 6.47 million
- Airport portfolio passenger traffic: up 4% to 8.6 million
The numbers indicate that the airport business is expanding considerably faster than the rest of AIC’s infrastructure portfolio.
AEV’s Bigger Transformation Is Also Showing Up
The infrastructure improvement comes as the wider Aboitiz group continues to report strong growth.
Aboitiz Equity Ventures posted ₱13.6 billion in consolidated net income in the first half of 2026, a 63% increase from the same period a year earlier.
The group said infrastructure benefited from growing passenger demand across its airport portfolio, while its power and banking businesses also contributed significantly to the overall result.
For Aboitiz, infrastructure is therefore part of a much broader portfolio transformation.
The airport business is becoming particularly important because it combines long-term infrastructure assets with exposure to tourism, trade and passenger growth.
But The Real Test Starts With the ₱15-Billion Investment
The concession extension gives Aboitiz more time.
The ₱15-billion commitment gives the company a much bigger capital program.
And rising passenger traffic provides the demand that could support those investments.
But the scale of the planned spending also raises the stakes.
The challenge will be to expand capacity without compromising passenger experience, while ensuring that the additional infrastructure generates enough long-term revenue to justify the capital deployed.
The government is also expecting the investment to help restore and expand routes and improve transfers without placing excessive pressure on passenger charges.
That makes the next phase of MCIA’s development particularly important.
Cebu’s Airport Growth Could Change Aboitiz’s Infrastructure Story
For years, Aboitiz InfraCapital’s infrastructure portfolio has been a work in progress, with major investments requiring time before reaching full profitability.
The latest numbers show a noticeable shift.
AIC’s revenue is growing rapidly. Its EBITDA is expanding. Its net loss has nearly been cut in half. And its airport operations — led by MCIA — are already profitable at the business level.
The government has now approved a longer concession period while Aboitiz prepares to invest nearly ₱15 billion more into the airport.
The next question is no longer simply whether Cebu airport can handle more passengers.
It is whether Aboitiz can turn that passenger growth into a much larger, more profitable infrastructure platform — while delivering the airport expansion Cebu’s next wave of travelers will demand.
