Group revenue increases significantly, boosted by higher passenger demand – Operating result (EBITDA) achieves strong growth of over 75 percent to €70.7 million – Fraport CEO Schulte: Travel rebound remains stable, despite market uncertainties
FRANKFURT, Germany, May 10, 2022 /PRNewswire/ -- FRA/gk-rap – During the first three months of 2022, Fraport AG's business performance continued to be affected by the coronavirus pandemic, as well as the initial impact on aviation from Russia's invasion of Ukraine. Nevertheless, the rebound in passenger demand in the reporting period boosted Group revenue by 40.2 percent year-on-year in the first quarter of 2022. The Group's operating result or EBITDA (earnings before interest, taxes, depreciation and amortization) grew even stronger by 75.9 percent to €70.7 million. Due to one-off effects, the Group result (net profit) decreased to minus €118.2 million.
Fraport's CEO, Dr. Stefan Schulte, stated: "Despite the omicron virus variant and new geopolitical uncertainties, a significantly higher number of people are traveling by air again. With passenger figures rising at our airports across the Group, the operating result improved significantly in the first quarter of 2022. For our home-base Frankfurt Airport, we remain optimistic because of the positive booking figures for the coming summer travel season. For the entire year, we expect to see between about 55 percent and 65 percent of pre-pandemic passenger volumes in Frankfurt. At the same time, the war in Ukraine is impacting our business as well – a war that we condemn in the strongest terms, as an unjustified attack on a sovereign state. One of the effects of this war are increasing prices, and we also are feeling the rise of inflation. Despite this, however, we continue to expect Fraport's full-year business performance to be clearly positive. Therefore, we are maintaining our previously announced outlook."
Traffic continues to recover
Although the spread of the coronavirus' omicron variant still dampened passenger demand at many Group airports at the beginning of the year, the further lifting of travel restrictions largely supported ongoing passenger recovery across the Group during the first quarter of 2022. Frankfurt Airport served a total of 7.3 million passengers in the first three months of the year – an increase of more than 100 percent compared to the same period in 2021. In contrast, cargo throughput (comprising airfreight and airmail) slipped by 8 percent year-on-year to 511,155 metric tons. Factors contributing to this decline included China's ongoing Covid-related lockdowns, as well as reduced airspace capacity resulting from the war in Ukraine. The airports in Fraport's international portfolio sustained their rebound in the first quarter of 2022. Most of the Fraport Group airports outside Germany gained more than 100 percent in traffic year-on-year during the first quarter of 2022, with the exception of the two Brazilian airports (up 68 percent, overall), Antalya Airport in Turkey (up 82.5 percent) and Samos Airport in Greece (up 95.2 percent).
Key operating figures improve noticeably
Fraport's Group revenue climbed by 40.2 percent year-on-year to €539.6 million in the first quarter of 2022. When adjusting for revenue from construction and expansion measures at Fraport's subsidiaries worldwide (in line with IFRIC 12), Group revenue grew by 37.6 percent to €474.4 million. Buoyed by the rebound in passenger traffic, Fraport's operating result (Group EBITDA) soared by 75.9 percent year-on-year to €70.7 million. Group EBIT also improved from minus €70.2 million in the first quarter of 2021 to minus €41.3 million in the reporting period. The financial result was affected by two diverse non-recurring effects from at-equity subsidiaries. On the one hand, the financial result was positively impacted by the upward revaluation of the Xi'an subsidiary (with an accretive effect of €20.0 million), following the agreed divestiture of Fraport's 24.5 percent stake in Xi'an Airport. On the other hand, Fraport made a negative value adjustment of €48.2 million on a loan receivable from Thalita Trading Ltd. in connection with its minority-owned St. Petersburg subsidiary. This adjustment was mainly due to the increased default risk related to the loan. Reflecting both of these one-off effects, the Group result (net profit) dropped to minus €118.2 million.
Financial outlook: Fraport expects full-year 2022 to be clearly positive
After conclusion of the first quarter, Fraport's executive board is maintaining its outlook for the current 2022 business year. In Frankfurt, Fraport expects to achieve a passenger volume of between about 39 million and 46 million for the full year 2022. This represents up to 65 percent of the passenger traffic seen at Germany's largest aviation hub before the pandemic. Fraport's majority-owned airports worldwide are expected to achieve even stronger dynamic growth. Group revenue is projected to reach some €3 billion in fiscal year 2022. Group EBITDA is forecast to range between about €760 million and €880 million. The Group result (net profit) is also expected to be clearly in positive territory, ranging between about €50 million and €150 million.
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About Fraport AG and Frankfurt Airport
Headquartered in Frankfurt, Germany, Fraport AG (Frankfurt Stock Exchange, MDAX) is one of the leading players in the global airport business. Fraport's portfolio of companies spans four continents with activities at 30 airports worldwide. In pre-pandemic 2019, more than 182 million passengers used airports in which Fraport has at least a 50 percent stake. Impacted by the Covid-19 pandemic, Fraport's majority-owned Group airports welcomed only about 86 million passengers in 2021. In fiscal year 2021 (Dec. 31), Fraport AG generated revenue of €2.1 billion and profit of some €92 million.
Fraport's home-base Frankfurt Airport (FRA) is strategically located in the heart of Europe at the junction of vital intermodal road, rail and air networks. The surrounding Frankfurt Rhine-Main-Neckar region serves as an economic powerhouse and logistics hub for Europe and the world. In 2019, FRA welcomed more than 70.5 million passengers and handled 2.1 million metric tons of cargo. Only 24.8 million passengers traveled through FRA in 2021, due to the Covid-19 pandemic. In terms of cargo, FRA ranks first in Europe with 2.3 million metric tons handled in 2021.
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