Wednesday, 6 November 2019

Fraport reports solid revenue and earnings performance

Fraport has continued its growth trend in the first nine months of 2019, achieving an increase in both revenue and earnings. This positive performance was driven by solid traffic growth at Frankfurt Airport (FRA) and the Fraport Group's airports worldwide. However, the growth momentum has been slowing down during the year to date.

Fraport AG's executive board chairman, Dr. Stefan Schulte, said: "Our industry is being impacted by the weaker global economy and consolidation of the European aviation market. Furthermore, regulatory interventions by the German government - such as the planned increase to the national air traffic tax - are also affecting our sector. After a phase of rapid traffic growth, airlines are cutting back their plans and thinning out their winter schedules. Nevertheless, we are maintaining our full-year outlook for the 2019 business year - also backed by the ongoing positive performance of our Group airports worldwide. Thanks to Fraport's large and diversified portfolio of international airports, we are well-positioned for the future."

International activities boost growth in revenue and earnings

In the January-to-September 2019 period, Fraport's Group revenue increased by 12.0 percent to €2,852.2 million year-on-year. After adjusting for proceeds related to expansion investments at the Group's airports worldwide (based on IFRIC 12), revenue rose by 5.2 percent to €2,486.7 million. At Frankfurt Airport, factors contributing to revenue growth included higher proceeds from ground handling services, airport and infrastructure charges, as well as security services. Retail, parking and advertising revenue also increased significantly. However, Fraport's international portfolio clearly continued to be the largest revenue driver. In particular, the Group company in Lima (up €30.5 million), Fraport Greece (up €25.4 million) and Fraport USA (up €21.8 million) contributed substantially to the Group's adjusted revenue growth.

Recommended for you...

No comments: