The Fraport global airport company registered passenger growth of 7.2 percent to a total of 74.1 million travelers across its actively-managed aviation gateways during the first half of 2024 (ending June 30). Supported by the growing demand for air travel, Group revenue increased by 13.0 percent year-on-year to €2,038.8 million. Fraport’s operating result or EBITDA (earnings before interest, taxes, depreciation, and amortization) reached €567.1 million, up 17.8 percent year-on-year. The Group result, or net profit, registered an even higher growth rate, surging by nearly 90 percent to €160.8 million (from €85.0 million in the first half of 2023).
Fraport CEO Dr. Stefan Schulte commented: “In the second quarter of 2024, we successfully continued our positive financial performance from the beginning of the year. Passenger numbers in Frankfurt grew by about 4.5 percent in the April-to-June period. However, compared with the 10.4 percent increase seen in the first quarter, the positive trend in Frankfurt has slowed down during the second quarter. Growth in Frankfurt is particularly constrained by high location-specific costs imposed by German regulators. Moreover, delivery delays for new Boeing aircraft affecting our main customer Lufthansa and additional maintenance intervals for the Airbus A320 aircraft family also cause growth rates to gradually level off in the low single-digits. Our international business continues to be the main growth driver for our company. Fraport’s 14 Greek airports achieved new passenger records in the first half – as did our Group airports in Antalya and Lima.”
Key performance indicators reach double-digit growth
In the first half of 2024, Fraport’s Group revenue increased by 14.1 percent year-on-year to €1,766.6 million (after adjusting for revenues resulting from construction and expansion measures at Fraport’s international subsidiaries in line with IFRIC 12). In Frankfurt, this positive revenue performance was driven by passenger growth and price effects leading to higher proceeds from airport charges (up €60.9 million year-on-year), infrastructure charges (up €21.6 million), ground services (up €17.8 million) and aviation security charges (up €14.0 million). The Group’s adjusted revenue was also boosted by Fraport’s international business. Major contributions came from Fraport USA (up €33.0 million) after this subsidiary took over centre management operations at Washington D.C.’s Dulles and Ronald Reagan airports at the start of the year. Lima (up €25.5 million) and Fraport Greece (up €22.2 million) also contributed to revenue growth, with both subsidiaries showing positive traffic performance.
The Group’s operating result (or EBITDA) rose by 17.8 percent year-on-year to €567.1 million in the first six months. This growth was supported both by the Aviation and Ground Handling segments in Frankfurt and the ongoing strong performance of the Group’s International Activities segment, in particular the airports in Greece and Lima. The Group result (or net profit) surged by 89.2 percent year-on-year to €160.8 million. As a result, basic earnings per share rose to €1.63 in the first six months (6M/2023: €0.87).
Passenger numbers continue to rise
Most of Fraport’s Group airports worldwide recorded ongoing passenger growth during the first half of 2024. Passenger numbers at Frankfurt Airport rebounded to about 86 percent of pre-pandemic levels, with some 28.8 million passengers traveling via FRA in 6M/2024 (up 7.0 percent year-on-year). However, the recovery decelerated over the first half of the year: while in the first quarter a 10.4 percent passenger growth was achieved, the growth rate declined to 4.5 percent in the second quarter. Meanwhile, some of the Group’s airports outside Germany even achieved new passenger records in 6M/2024, driven by growing demand. These included the 14 Greek airports overall (up 7.8 percent year-on-year), and the gateways in Antalya (up 12.8 percent) and Lima (up 20.0 percent). A detailed overview of Fraport’s traffic figures is available here.
FY 2024 outlook with more precise projections
Fraport’s executive board takes a positive view of the Group’s performance during the first half, while providing more precise projections for the full 2024 fiscal year. Due to the above-mentioned aircraft supply delays, Fraport now expects passenger numbers in Frankfurt to reach the lower half of the previously projected range of between about 61 million and 65 million passengers. Group EBITDA is forecast to reach a range of between approximately €1,260 million and €1,360 million. The Group result (net profit) is still expected to lie between around €435 million and €530 million. Both performance indicators (EBITDA and Group result) are thus expected to reach about the middle of the previously forecast range.
