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Fraport after a weak start to the year: on course for recovery?
Fraport reports a loss of over 16 million euros in Q1 2023. Despite weak results, the board remains optimistic.
Fraport after a weak start to the year: on course for recovery?
The airport operator Fraport published worrying figures for the first quarter of 2023. During this period, the company suffered a loss of over 16 million euros, while a similar profit was recorded in the previous year. A decline in passenger numbers and the later Easter date are cited as the main reasons for the weak results. Despite the difficult initial situation, CEO Stefan Schulte remains optimistic and sees the group on track to achieve its annual targets. He predicts that the number of passengers in Frankfurt could rise to up to 64 million. Operating profit (Ebitda) is also expected to increase moderately. In the first quarter of 2023, Fraport counted 12.4 million passengers, which means a decrease of almost one percent compared to the previous year. The decline in Ebitda fell by 16.5 percent to 177.5 million euros, which was greater than analysts expected.
In addition, Fraport received a compensation payment at the beginning of 2024 due to the Corona crisis, which represents a small relief given the current challenges. Despite these setbacks, the long-term outlook is more positive.
Recovery in fiscal year 2024
However, Fraport will show a significant recovery in the 2024 financial year. Frankfurt Airport recorded a total of 61.6 million passengers, an increase of 3.7 percent compared to the previous year. This corresponds to 87.3 percent of the passenger level in 2019, the year before the pandemic. However, traffic growth at the start of the year was dampened by strikes and weather-related flight cancellations. Demand for business travel is gradually recovering, but domestic traffic remains below pre-crisis levels.
Growth of 4.2 percent was recorded in European traffic, with hot water destinations and city trips particularly in demand. Growth in intercontinental connections was 3.4 percent, with traffic from the Far East (+13.3 percent) in particular acting as a growth driver. In this context, it is also worth mentioning the cargo volume of 2.0 million tons, which corresponds to an increase of 6.5 percent compared to the previous year, although it recorded a decrease of 4.8 percent compared to 2019.
Comprehensive traffic development
The traffic development at the various group locations also shows positive trends:
| Location | Passengers (2024) | The change (%) | Cargo (tons) | The change (%) | Flight movements | The change (%) |
|---|---|---|---|---|---|---|
| Frankfurt | 61,561,247 | +3.7 | 1,991,046 | +6.5 | 440,853 | +2.4 |
| Ljubljana | 1,438,713 | +13.3 | 12,353 | +8.0 | 25,457 | +11.9 |
| Fortaleza | 5,658,227 | +1.0 | 50,150 | +9.2 | 53,970 | +1.4 |
| Porto Alegre | 3,888,527 | -48.1 | 24,742 | -38.8 | 34,974 | -51.9 |
| Lima | 24,495,815 | +15.2 | 228,963 | +7.1 | 189,488 | +11.1 |
| Fraport Greece | 36,026,347 | +6.4 | 6,131 | +3.5 | 276,341 | +4.4 |
| Fraport Twin Star | 3,365,034 | -8.7 | 792 | -69.7 | 25,184 | -6.8 |
| Antalya | 38,061,755 | +6.5 | 232,148 | +4.5 |
The forecasts for 2024 are overall positive, even if some locations such as Porto Alegre were unable to achieve the desired results due to flooding. Despite the short-term challenges, Fraport AG remains committed to achieving its set goals.