GOCC handling Clark complex posts 33% profit drop in 2023

The state-run firm tasked to manage the Clark Civil Aviation Complex sustained a 33 percent cut to its profit in 2023, hurt by a combination of revenue decline and spending hike.

Based on its financial report, Clark International Airport Corp. (CIAC)’s net income dropped to P295.24 million in 2023 from P438.75 million in 2022, as earnings fell and expenses rose.

CIAC saw its revenue drop by nine percent to P692.24 million, while expenses swelled by 24 percent to P379.7 million.

The agency improved its service and business income by eight percent to P650.97 million, getting the bulk of the amount from lease collection. However, it failed to sustain its gains from the revaluation of dollar-denominated funds, crashing by 96 percent to P5.27 million.

Likewise, CIAC increased its personnel expenses to give out the benefits included in its new organizational structure and staffing pattern (OSSP). All in all, the agency increased labor spending by 36 percent to P163.95 million.

“(The) increase in personnel services in 2023 of P43.104 million was mainly attributable to the implementation of new OSSP of CIAC in pursuance of the GCG Memorandum Order 2022-10,” CIAC said.

As a government-owned and controlled corporation, CIAC is required by the Dividends Law to remit 50 percent of its net income to the Bureau of the Treasury.

Despite the profit decline, CIAC accomplished most of its objectives for 2023, especially in the development of the Clark Civil Aviation Complex.

For one, aircraft movement in Clark reached 14,867 in 2023, surpassing by 56 percent the target of 9,552. As businesses recovered their momentum, the CIAC said locators generated 3,702 jobs as opposed to the goal of 2,000.

For 2024, the CIAC targets to double the passenger footprint at the Clark International Airport to four million, from nearly two million in 2023. The agency is negotiating with foreign airlines to convince them to mount additional flights coming from Clark.

As listed in its performance scorecard, the CIAC also aims to expand the flight volume in Clark to 18,608 and secure 1,000 jobs from its investors.

CIAC is the state-owned firm tasked to manage the Clark Civil Aviation Complex, an area covering 2,367 hectares where the Clark International Airport is situated.