Fraport Group reports freight fall in Frankfurt in 1H19 but better finances

posted on 8th August 2019 by Justin Burns
Fraport Group reports freight fall in Frankfurt in 1H19 but better finances

Fraport Group has reported that cargo volumes at Frankfurt Airport reached 1.05 million tonnes in the first half of 2019, a 2.6 per cent decline on the same period last year.

The traffic development it said was in line with the leading economic indicators but varied from region to region.

Significant increases were recorded in the six months this year, notably in traffic from the US, which was up 5.8 per cent, but traffic to and from Asia performed the opposite as it contracted by 6.3 per cent. European traffic grew dynamically in the first half of 2018, as it rose 4.3 per cent.

During the first half of fiscal 2019 ending June 30, the German airport operator Fraport Group also reported it achieved growth in both revenue and earnings.

Group revenue increased by 5.2 per cent to €1.51 billion, after adjusting for revenue in connection with capital expenditures made for expansion projects at Fraport Group’s airports worldwide.

At Frankfurt Airport, factors contributing to revenue growth included higher proceeds from ground handling services and infrastructure charges, as well as from the retail and parking business.

In Fraport’s international portfolio, major contributions came from the Lima Airport Partners subsidiary in Peru, as well as from Fraport USA and Fraport Greece.

The operating result or Group EBITDA (earnings before interest, taxes, depreciation and amortization) advanced by 10.9 per cent or by €50.2 million to €511.5 million in the reporting period.

The increase can be attributed, in particular, to the positive performance of the ground handling and retail & real estate business segments in Frankfurt, with both segments benefitting, among other things, from traffic growth at Frankfurt Airport.

Fraport saw an improved financial result, and net profit rose by €24.1 million or 17.1 per cent to €164.9 million in the reporting period.

Fraport AG’s executive board chairman, Stefan Schulte said: “In the first half of 2019, we successfully held our ground amid the overall challenging market environment.

“I am particularly pleased that we have been able to further increase our passenger satisfaction levels despite intensified peak traffic, while also reducing wait times at the security checkpoints. We remain strongly committed to further optimising our processes.”

The executive board is forecasting in the 2019 business year, that Group EBITDA will be between €1,160 million and €1,195 million; Group EBIT between €685 million and €725 million; Group EBT between €570 million and €615 million; and net profit between €420 million and €460 million.