Fraport profits fall despite cargo picking up

Frankfurt Airport Cargo City South

Fraport Group has seen first half profits fall by 3.2 per cent to 99.7 million euros ($111.6 million), with traffic volumes being impacted by geopolitical circumstances despite cargo growth.

The profits fell due to passenger numbers declining because of concerns after terrorist attacks, with the second quarter seeing an 8.4 per cent drop to 84.6 million euros. Revenue in the first half fell by 1.4 per cent to 1.2 billion euros and by 2.1 per cent to 652.3 million in the second quarter.

Fraport executive board chairman, Dr Stefan Schulte says: “With air traffic being negatively impacted by geopolitical circumstances, several of our Group airports experienced significant traffic declines.”

“Also taking into account the expected positive effects resulting from the sale of a partial stake in St. Petersburg, we are maintaining our outlook for the Group’s asset, financial, and earnings position for the 2016 business year, despite the challenging environment.”

Fraport’s main airport, Frankfurt Airport saw first half cargo volumes increase by 0.4 per cent to one million tonnes, with results picking up in the second half, which saw it rise two per cent to 528,712 tonnes.

The board says cargo volumes to remain at 2015 level, with the momentum of world trade remaining weak though there have been some recent improvements.