Strong 2017 for the Fraport Group across its divisions

posted on 16th March 2018 by Jordan Newton
Strong 2017 for the Fraport Group across its divisions

Revenue at the Fraport Group rose by almost 13.5 per cent to €2.93 billion in the 2017 fiscal year driven by the performance of its Greek airports which boosted revenue by €234.9 million.

The airport operator’s EBITDA increased by approximately 18 per cent or about €150 million. The Group result (consolidated earnings) fell by 10.1 per cent to €360 million.

Fraport’s Ground Handling services division saw a slight 1.8 per cent gain in revenue (€8.1 million) to €641.9 million in 2017. This is due mainly to increased revenue from ground services thanks to traffic growth at Frankfurt Airport.

Frankfurt Airport ended 2017 with a 6.1 per cent gain in traffic to more than 64.5 million passengers. In Fraport’s international business, the airports of Ljubljana , Varna and Burgas, St. Petersburg, Lima, and Xi’an each posted new annual passenger records.

The 14 Greek regional airports, which joined the Fraport Group in April 2017, welcomed 27.6 million passengers in 2017 – thus posting a new annual record in combined passenger traffic.

Following a difficult 2016, Antalya Airport in Turkey registered renewed growth with passenger traffic rising by 38.5 per cent to more than 26.3 million passengers.

Fraport is expecting continued strong growth for the 2018 fiscal year. At Frankfurt Airport, the company is forecasting annual passenger volume ranging from about 67 million to 68.5 million.

The company expects overall positive development at its airports outside of Germany. In particular, the airports in Antalya, Lima, and Xi’an are expected to record high traffic volumes again this year.

The airport operator expects its Brazilian airports in Fortaleza and Porto Alegre, as well as the 14 Greek airports, to experience single-digit growth rates, in the middle range.

Fraport executive board chairman, Stefan Schulte said: “In Frankfurt, the strategic decisions that we have taken are allowing us to benefit from considerable market growth once again, and we can look back on a very strong year indeed.

“Internationally, we achieved important milestones with the operational takeover of 14 Greek airports and the acquisition of two concessions in Brazil. With these developments, we are securing the Fraport Group’s long-term growth prospects, while diversifying our portfolio with a broader and stronger foundation for the future.”

For the current fiscal year, Fraport is expecting consolidated revenue to reach up to €3.1 billion. Group EBITDA is forecasted to be in the range of about €1.080 billion to approximately €1.110 billion, with consolidated EBIT of about €690 million to about €720 million. The company also expects to post a significantly higher Group result between about €400 million and approximately €430 million.

As for 2018, Schulte explained: “In the current fiscal year, Fraport’s international business is focused on progressing with various expansion and construction projects in Greece and Brazil, so that we can increase capacity and enhance the travel experience of our passengers.

“We are also continuing the demand-driven development of infrastructure at Frankfurt Airport, and are on schedule with the construction of Terminal 3. We plan to commence construction of Pier G in the second half of 2018.”