The Fraport Group was able to increase its sales by 12.2 percent to 3,393 million euros in the first nine months of 2023. International business in particular proved to be a growth driver for the company, reporting EBITDA that grew by 9.5 percent to 1,051 million euros.
Strong growth in international business
The airport operator Fraport reports that almost half of its EBITDA was generated through international business. Long-term investments, particularly in Greece, Antalya and Lima, contributed significantly to the positive business development and set new passenger records. These international successes partially compensated for the slower growth in Germany.
Challenges in the German market
Fraport’s CEO, Dr. Stefan Schulte, highlights the high location costs in Germany as a key factor for the sluggish growth in the domestic market. Moderate passenger growth of just 4.9 percent in Frankfurt underlines this challenge. Compared to 2019, passenger numbers in the third quarter fell by 13 percent.
Political framework conditions criticized
Dr. Stefan Schulte criticizes the state-regulated costs, which have increased by 53 percent since 2019. These taxes represent a competitive disadvantage compared to international standards, which prompts airlines to expand their offerings in other markets. He calls for decisive action from politicians in Berlin to revise this cost structure.
Positive outlook for international airports
Fraport reports that many of its international locations have already achieved new records in passenger volumes. In particular, the 14 Greek airports, the airport in Antalya and the airport in Lima recorded significant increases compared to the numbers before the 2019 crisis. This growth contributed significantly to the company’s economic solidity.
Fraport is one of the leading international airport operators, known for its innovative strength in the aviation sector. With a diversified portfolio of airports worldwide, the company focuses on sustainable growth and long-term partnerships. Fraport remains committed to consolidating its position as market leader in a constantly changing market environment.
Fraport achieves stable results in Q3 2024
Fraport recorded sales growth of 11.0 percent to 1,354 million euros in the third quarter of 2024 despite challenging market conditions in Germany. EBITDA rose slightly by 1.2 percent, while weather-related events such as the closure of Porto Alegre Airport impacted results. The first nine months show strong growth in key financial indicators.
Solid sales growth in the third quarter
Fraport reports that sales increased by 11.0 percent to 1,354 million euros in the third quarter, which was due to robust volume growth. Adjusted for construction sales in accordance with IFRIC 12, sales amounted to 1,201 million euros, which corresponds to an increase of 10.9 percent. It is particularly pleasing that 60 million euros of the increase in sales come from the international portfolio. Despite unfavorable market conditions, solid results were achieved.
Influence of external factors on EBITDA
EBITDA rose compared to the previous year by only 1.2 percent to 483.7 million euros. Compared to the previous year, compensation that improved earnings would have contributed to this. Fraport also pointed out that the closure of Porto Alegre Airport due to flooding had affected its results. Therefore, the consolidated result of 273.2 million euros was almost the same as the previous year.
Significant increases in the first nine months
Fraport increased all key financial indicators over the first nine months. Sales rose by 12.2 percent to 3,393 million euros. Likewise, consolidated sales adjusted for IFRIC 12 increased by 12.8 percent to 2,968 million euros. The operating result also increased by 9.5 percent to 1,051 million euros. If you look at international business, it contributed almost 47 percent of operating performance.
Fraport provides an outlook for stable annual results
For the year as a whole, passenger volumes in Frankfurt are expected to be in the lower range of the forecast 61 to 65 million passengers. In view of the solid development in the first few months and the positive outlook for the fourth quarter, Fraport is anticipating consolidated EBITDA in the mid-range of 1,260 to around 1,360 million euros. When it comes to consolidated earnings, Fraport also expects to achieve the average forecast of around 435 to 530 million euros.
Fraport is a global leader in airport management and operates numerous airports internationally. The company stands out for its innovative infrastructure and sustainable practices, making it a significant player in the aviation industry. Fraport remains committed to strengthening its market position through continuous improvement and expansion.
