Fraport Group performance buoyed by resurgent traffic in first nine months

The sharp recovery of passenger traffic at Frankfurt Airport is good news for partners such as Gebr. Heinemann (Terminal 1 Pier Z pictured)

GERMANY. Fraport Group today reported results for the first nine months of 2022, with a strong passenger traffic recovery lifting revenue and profits.

Fraport revenue rose by +57.7% year-on-year to €2,367.8 billion, with EBITDA up +32.8% to €828.6 million and net profit down by -16.9% to €98.1 million. The profit figure was due to the full write-off of Fraport’s investment in Russia to the amount of €163.3 million.

Fraport Group nine-month key financials (click to enlarge)

The Retail & Real Estate division posted revenue of €313.5 million, up +35.2% year-on-year. Within this, retail revenue performed well, though net retail revenue per passenger slipped to €3 from €3.74 in the same period last year, as average spend from a higher passenger base moderated.

The revenue performance was driven in part by a strong resurgence in traffic at Frankfurt Airport, which served 35.9 million passengers in the first nine months. This was up by +127% year-on-year but down by -33.7% on the same period in 2019. In Q3, Frankfurt Airport reached around 74% of pre-crisis levels.

The airports in Fraport’s international portfolio also experienced a sharp increase in passenger traffic. Fraport’s 14 Greek airports exceeded pre-crisis levels in 2019 by +3.1% in the first nine months. In the third quarter of 2022, Fraport Group airports outside Germany, most of which are tourism gateways, recovered to 93% of levels registered in the same period in 2019.

Financial performance of the Retail & Real Estate division; click to enlarge

In Q3, travel demand pushed group revenue up by +46% year-on-year to €925.6 million with EBITDA just -4% short of Q3 2019 at €420.3 million. The principal driver was the company’s international business, which set a new record by accounting for 62% of EBITDA in the third quarter. Group result (net profit) rose by +47.4% year-on-year to €151.2 million.

Fraport CEO Dr. Stefan Schulte said: “Over the past nine months, demand has surged dynamically. Following a modest start early in the year due to the braking effect of the Omicron variant of the coronavirus, the volume accelerated significantly from March into the Fall.

“This brisk growth is being driven by strong demand from leisure travellers. The airports of Fraport’s international portfolio that are located in popular holiday regions are benefiting to an especially great extent from this trend.

“Our Greek airports have performed particularly well, even exceeding the volumes of pre-crisis 2019 during the first nine months of the year. In the third quarter we also significantly boosted the group’s net profit, which had still been negative in the first half of the year as a result of the complete write-off of our investment in Russia.” 

For 2022 as a whole, Fraport is aiming for a result at the upper end of its previously stated forecasts. Passenger volumes at Frankfurt Airport are expected to reach the upper range of predictions, between about 45 and 50 million in the year.

Revenue is expected to slightly exceed €3 billion for 2022. EBITDA is projected to reach between €850 million and €970 million, while EBIT is expected to be in the range from €400 million to €520 million. The forecast window for the group’s profit extends from zero to around €100 million.

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