Fraport profits rise despite revenue dipping

Frankfurt Airport Cargo City South

Fraport profits rose 34.8 per cent to €400 million ($429 million) despite revenue dipping 0.5 per cent to €2.59 billion.

The company says ground handling revenue decreased 6.3 per cent to €630.4 million due to the sale of shares in Fraport Cargo Services, and adjusted for the effects from the sales, underlying revenue grew 1.8 per cent.

Fraport executive board chairman, Dr Stefan Schulte says: “Despite the challenges of the 2016 business year, we have achieved our best annual result ever.  The sale of the 10.5 percent share in our Pulkovo Airport subsidiary in St. Petersburg has demonstrated that we are able to develop international airport concessions even amid difficult market environments.  We will therefore continue to consistently pursue our strategy of operating a broadly diversified international portfolio.”

Cargo volumes at Frankfurt Airport were up 1.8 per cent in 2016 to 2.1 million tonnes helped by strong growth in the second half of the year.

Fraport revenue to increase to approximately to €2.9 billion backed by traffic growth at Frankfurt and other group airports.

Schulte says: “We are optimistic about the current business year and expect Frankfurt Airport’s traffic to grow both in the low-cost segment and the traditional hub traffic.  At the same time, we will continue to strategically develop our international business.  By taking over the operation of the 14 Greek airports, we will unleash further growth potential.”