New record result
Fraport benefits from the return of the desire to travel
March 19, 2024, 8:21 a.m
The aviation industry is fighting its way out of the crisis, and people are increasingly traveling by plane again. Even though Germany’s largest airport, Frankfurt, is still below pre-crisis levels, operator Fraport achieved record results last year.
The airport operator Fraport has achieved record results thanks to a renewed increase in air traffic at Frankfurt Airport and its international partner airports. The operating result (Ebitda) rose by 17 percent to 1.2 billion euros in 2023, as the company announced. The group’s sales also reached a new high of 4.0 billion euros after 3.2 billion euros in the previous year.
While the Greek and Turkish airports owned by Fraport achieved passenger records, the largest German airport in Frankfurt only recovered to 84 percent of its pre-crisis level. The reason for this is the high location costs caused by rising taxes and fees, explained Fraport boss Stefan Schulte. “The industry needs a political turnaround in order to be able to manage important projects such as the switch to CO2-free operations,” he demanded.
The bottom line is that the MDax group increased its profit more than analysts expected, by 160 percent to 430.5 million euros. Fraport does not want to pay a dividend for the past or this financial year, as the debts that increased during the Corona crisis have to be reduced and investments have to be made in the expansion of Frankfurt Airport, for example.
For 2024, Fraport expects the number of passengers in Frankfurt to increase to 61 to 65 million after 59.4 million in 2023. The operating result is expected to increase slightly to 1.26 to 1.36 billion euros, and consolidated profits to rise to 435 to 530 million euros. For 2030, the company, which is celebrating its 100th anniversary this year, has set its sights on growing its operating profit to two billion euros and a free cash flow of one billion euros.