ABOITIZ Equity Ventures (AEV), the listed holding firm of the Aboitiz Group, is navigating a more uncertain operating environment as the war in the Middle East drives up costs, tempering growth expectations across its business units.
“The immediate impact so far has centered on the increasing cost of logistics [and] packaging materials,” Emmanuel Hilado, AEV chief financial officer, told a media briefing late on Monday.
How much of these costs could be passed on to clients “would be a function of how consumers react,” he added.
Despite the headwinds, infrastructure arm Aboitiz Infracapital said it was pressing ahead with an expanded capital expenditure (capex) program.
“We have allocated around P8.1 billion in capex for this year, which is nearly double last year’s P4.1 billion,” said Cosette Canilao, the company’s president and CEO, adding that the spending is expected to support growth the group’s airports, water and digital infrastructure businesses.
“Airports remain our strongest growth drivers,” led by Mactan-Cebu International Airport, Canilao said, citing continued recovery in passenger traffic and improving commercial activity.
Mactan-Cebu airport was said to have recorded its highest passenger traffic in January, with first-quarter volumes exceeding expectations, but sustained increases in fuel prices could start weighing on travel demand.
“If the [Mideast] conflict persists and fuel prices remain elevated, we may see some impact... mainly through higher airfares, route adjustments, [and] reduced frequencies,” Canilao said, noting that some airlines had already adjusted their routes.
In the power segment, Aboitiz Power Corp. said it had so far avoided operational disruptions but was continuing to monitor fuel exposure.
“To date we haven’t experienced any operational disruptions... [but] the most direct exposure we have today is to the cost of our fuel,” said President and CEO Sandro Aboitiz, adding that the current situation validated its shift toward renewable energy.
“Solar, wind, hydro and battery storage reduce our long-term dependence on imported fuel,” he added.
Meanwhile, Union Bank of the Philippines said domestic banks were now focusing on stability amid the volatility created by ongoing tensions in the Middle East.
“The key is to give confidence... [and ensure] that the Philippine banks are ready to manage these volatilities,” said Manuel Lozano, chief financial officer.
Lozano cited the bank’s efforts to strengthen capital, maintain liquidity, and protect earnings by tightening credit standards and managing expenses more closely while ensuring continued access to services for clients.
Food unit Aboitiz Foods flagged rising cost pressures across its operations, with company president and CEO Tristan Aboitiz saying “The more pressing near-term pressure comes from higher freight and energy costs across the food value chain.”
In the property segment, Aboitiz Land continued to see steady demand in its Cebu estates despite a challenging environment, according to Rafael Fernandez de Mesa, president and chief executive officer.
“While the environment is challenging, we’re positioned to absorb that while continuing to execute,” Aboitiz Land’s de Mesa said, noting stronger demand in industrial segments.
Aboitiz Group officials described 2026 as a “tricky year” but emphasized focus on discipline and long-term positioning.
“We see 2026 as a year of more disciplined growth and continued operational improvement,” Tristan Aboitiz said.
Aboitiz Equity shares on Tuesday dropped P0.75, or 2.64 percent, to close at P27.70 each amid a 0.58-percent decline for the benchmark Philippine Stock Exchange index.
