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Fraport AG (FRG)

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Thursday 06 November, 2008

Fraport AG

Fraport Interim Report - January to September 2...





FRANKFURT, Germany, November 6 /PRNewswire/ --

- More Passengers and Airfreight - EBITDA Growth Despite Revenue Decline

    In the first three quarters of fiscal year 2008 all key
traffic and financial indicators of the Fraport Group continued to improve.
Frankfurt Airport (FRA) welcomed 0.1 percent more passengers, while
Group-wide Fraport recorded 1.9 percent passenger growth. Airfreight tonnage
rose by 1.2 percent at FRA and climbed by 2.9 percent for the Fraport Group's
airports combined. With EUR 1.6 billion, sales revenue fell 8.8 percent short
of the previous year's level. However, adjusted for the extraordinary effects
in the first nine months of 2007, Group revenue jumped by 4.4 percent.
Unadjusted, EBITDA (earnings before interest, taxes, depreciation and
amortization) increased by 0.4 percent to EUR492.5 million; the adjusted
EBITDA grew by 1.8 percent. Group profit advanced by 0.6 percent year-on-year
to EUR 220 million.



    Fraport AG's executive board chairman Dr. Wilhelm Bender said
that after the satisfying rates of increase in the first half of 2008, "the
economic development with its downward business trend" as well as the global
financial crisis have affected world air traffic and thus Fraport's operating
business.



    At Frankfurt Airport, Fraport recorded 41.1 million passengers
from January through September 2008, up 0.1 percent year-on-year. Airfreight
throughput increased by 1.2 percent to 1.56 million metric tons, and aircraft
movements dropped by 0.7 percent to approximately 368,000 takeoffs and
landings. At Fraport's majority-owned airports, the number of passengers
climbed by 1.9 percent to 61 million, while cargo (airfreight and airmail)
rose by 2.9 percent to 1.9 million metric tons.



    In particular, accumulated maximum takeoff weights (MTOWs)
developed positively at Frankfurt Airport, increasing by 1.3 percent over the
comparable January-to-September 2007 period to 21.5 million metric tons.
Because MTOWs are an indicator of aircraft size, "this means that the share
of the lucrative intercontinental traffic at FRA has increased further"
explained Bender. About 70 percent of all intercontinental flights to Germany
land at Frankfurt. Bender called this a positive development, because "most
long-haul passengers have strong purchasing power and a large propensity to
spend." Furthermore, long-haul flights are mainly operated with widebody
jets, which "earn us attractive fees and make particularly efficient use of
our constrained capacities."



    Bender stated that expansion of Frankfurt Airport's runway
capacity was progressing on schedule. With the zoning approval for a new
landing runway issued in January 2008, Bender expects the Hesse
Administrative High Court in Kassel to render a positive decision in the
fast-track proceedings by the beginning of 2009. "Then, we will start
constructing the landing runway and open it for the 2011 winter timetable,"
said Bender.



    This capacity expansion is essential for Fraport, despite the
temporary stagnation or slide in traffic figures, emphasized Fraport's
Bender. The excess demand seen at FRA for many years continues unabated.
Furthermore, experience has demonstrated that after every crisis or phase of
stagnation, world air traffic rebounds with over-proportionate growth rates:
"After every global crisis, traffic here at Frankfurt Airport not only
recovered but regularly recovered at overcompensating rates," explained
Fraport's executive board chairman. For example, passenger figures at FRA
slumped by nearly five percent during the 1991/1992 Gulf war, but after the
war traffic rebounded to annual grow rates of more than eight percent. And
after the 9/11 terrorist attacks in 2001, the Iraq war and the SARS epidemic,
Fraport already registered 5.7 percent more passengers at FRA in 2004.



    Until the opening of the new landing runway, Fraport plans to
continue modernization as well as service and capacity optimization of the
existing infrastructure at Frankfurt Airport. Thus, the international Pier B
in Terminal 1 will be completely redesigned. Furthermore, construction will
start on Pier A West, a brand new flight pier and a central building with a
total of 160,000 square meters of space, which will create additional
capacity for six million passengers per year.



    In addition, development of Frankfurt Airport City is
progressing. The nine-story Airrail Center on the rooftop of FRA's
Long-distance Train Station is currently under construction; the new Gateway
Gardens city district is being developed at the northern side of the airport;
and a modern commercial and office park for logistics, trade and other
aviation-related enterprises is mushrooming at the 110-hectare Mönchhof site
west of FRA.



    Bender underscored that the company's External Activities
segment will continue to play a vital role in developing and expanding the
Fraport Group's business portfolio. In the current business year,
approximately 170 million passengers will use the thirteen airports where
Fraport is involved either via equity investments or management contracts.
After the official launch of the German-Chinese joint-venture at Xi'an
Airport, in which Fraport holds a 24.5 percent share, Fraport's executive
board chairman has continued negotiating other projects in China. Thus, the
company has already signed memorandums of understanding in Qingdao and
Kunming. "We will of course remain active in other countries and regions of
the world, too," emphasized Bender. However, Fraport will continue its policy
of not acting as a mere financial investor and will get involved only where
the company can profitably market its know-how and expertise gained over many
decades of successfully operating Frankfurt Airport as one of the world's
biggest air transportation hubs.



    With an eye on the current development of the global economy,
Bender said that Fraport anticipates passenger traffic at FRA to decline by
between 1.0 and 1.5 percent in 2008. However, FRA's particularly attractive
intercontinental passenger sector will continue to develop positively with
1.0 percent growth. Group-wide Fraport expects passenger growth of 1.0
percent, as well.



    Overall, Fraport is well positioned for the future because of
its productivity, high standard of services, and professionalism - recognized
and in demand around the world.


    
    For More Information, Please Contact:

    Fraport AG Frankfurt Airport Services Worldwide,
    Robert A. Payne, B.A.A. - Manager International Press,
    Press Office (Dept. UKM-PS), Corporate Communications (UKM),
    60547 Frankfurt am Main, Federal Republic of Germany,

    Tel.: +49-69-690-78547; Fax: +49-69-690-60548;
    E-mail: [email protected]; Internet: http://www.fraport.com





 

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