Nine Month Results: Fraport’s Group Earnings Boosted by Business Outside Germany

First nine months of 2024 show passenger records at international subsidiary airports – Frankfurt sees 4.9 percent rise in passenger numbers – Third quarter still 13 percent below 2019 levels – Group result increases by 22 percent to roughly €434 million – Forecast confirmed for 2024

The Fraport Group has increased its revenue by 12.2 percent in the past nine months to €3.393 billion. The operating Group result (EBITDA) rose to €1.051 billion (+9.5 percent). Almost half of the EBITDA was attributable to the largely growth-heavy international business. Buoyed by this positive trend, the Group result (or net profit) rose by 21.6 percent to €434.0 million. Fraport is confirming that its expectations for key financial figures for the current fiscal year will be in the middle of forecasts.

Fraport Group CEO Dr. Stefan Schulte is critical of the political backdrop faced by German aviation: “The location costs set by regulators are too high in Germany. They are a major reason why our home market lags behind others in Europe in terms of the recovery of passenger numbers.” Schulte says this is having a financial impact on the Fraport Group: “We’re also feeling the effects of Germany's limited capacity growth at Frankfurt Airport.   Over the past nine months, we've continued to remain around 14 percent below the passenger numbers we experienced in pre-pandemic 2019. By comparison, we’re well ahead of 2019 figures at many of our international subsidiary airports, where we've set new passenger records. We’ve done particularly well at our 14 Greek airports, as well as in Antalya and Lima. We’re benefiting from this performance financially, as seen by the solid improvement in our result over the past nine months.

Passenger numbers grow more slowly at Frankfurt

In the first nine months of 2024, Frankfurt Airport increased its passenger numbers by 4.9 percent, to around 46.7 million (9M 2023: 44.5 million passengers). But it’s clear that the recovery has steadily fallen away as the year has gone on: while passenger numbers increased by 10.4 percent in the first quarter – despite major strikes – the second quarter saw an increase of only 4.5 percent and the third quarter just 1.8 percent. Passenger numbers in the third quarter remained 13 percent lower than in the same period in 2019, before the coronavirus pandemic. Most other European markets are already well out of the crisis period and have achieved new records in recent months. A major factor behind the weakness are high regulatory costs for operations in Germany. Aviation taxes, security levies, and air traffic control fees rank among the highest when compared to the competition.

Two examples: Since 2019, these cost components, which were already at a high level, have increased by a further 53 percent for an intra-European flight from Frankfurt on an Airbus A320 (as calculated by DLR and BDL). For long-haul flights, these operational costs set by regulators now amount to €18,303 for a Boeing Dreamliner bound for New York City, as an example. From Paris, the costs for the same destination in a Dreamliner are just €6,413 (calculation by ADV for long-haul flights using a Boeing 787-9 with standard seating of 269 seats and a load factor of 80 percent).

Dr. Stefan Schulte is clear: “Given these trends in costs, airlines are continuing to expand their offerings in other markets, where they pay lower fees to governments. Politicians in Berlin need to finally take action on this point”. “In Frankfurt, we’re expecting only minimal growth during the winter schedule as a result of fundamental factors, because of this competitive disadvantage.”

Important growth came from Fraport’s international portfolio. New passenger records were achieved by the 14 Greek airports (+18.2 percent on 9M/2019), the airport in Antalya on the Turkish Riviera (+5.6 percent on 9M/2019) and also - for the first time since the coronavirus pandemic - by the airport in Lima, the Peruvian capital (+2.7 percent on 9M/2019).     

Third quarter: solid result despite extraordinary effects

Despite difficult market conditions in Germany, revenue rose by 11.0 percent thanks to passenger growth, to €1.354 billion (Q3 2023: €1.220 billion). After adjusting for revenues resulting from construction and expansion measures at Fraport’s international subsidiaries (in line with IFRIC 12), revenue increased by 10.9 percent to €1.201 billion (Q3 2023: €1.083 billion). The revenue growth trend is pleasing. Half of the approximately €60 million increase that was recorded came from the international portfolio.

EBITDA edged up only slightly by 1.2 percent, to €483.7 million (Q3 2023: €478.1 million). This was attributable to earnings-enhancing extraordinary effects occuring during the same period in the previous year. The closure of the airport in Brazil's Porto Alegre due to flooding also had a negative impact on the current year. These factors explain why the Group result in the third quarter of 2024 at €273.2 million was almost identical to the result seen in the previous year (Q3 2023: €272.0 million).

First nine months: growth in key financial figures

Fraport improved all of its key financial figures on a nine-month basis: Revenue increased by 12.2 percent to €3.393 billion euros (9M 2023: €3.024 billion). Group revenue adjusted in line with IFRIC 12 was €2.968 billion, a 12.8 percent increase (9M 2023: €2.632 billion euros). The operating result rose by 9.5 percent to €1.051 billion (9M 2023:   €959.5 million) The international business made up almost half of this figure, at 47 percent. The Group result also benefited from the strong growth seen by subsidiaries, rising by 21.6 percent to €434.0 million (9M 2023: €357.0 million).  

Outlook: key financial figures expected to be in mid-range

Due to the current market situation, annual passenger numbers at Frankfurt Airport are expected to be at the lower end of the 61 to 65 million passenger range. Given the solid financial performance during the first nine months and the outlook for the fourth quarter, Fraport is forecasting Group EBITDA to be in the middle of the range, somewhere between €1.260 and approximately €1.360 billion. Fraport also expects the Group result to be in the mid-range of forecasts, somewhere between roughly €435-€530 million.  

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Webcast Link Call Q3/9M 2024 Interim Figures