Fraport — which operates Frankfurt Airport and holds interests in the operation of several other airports around the world — has raised its full-year outlook for 2023, citing continued improvement in its operations, particularly in the passenger segment.
After the conclusion of the first half, Fraport's executive board has updated its 2023 full-year outlook for Frankfurt Airport, providing more precise projections for the relevant key indicators.
In its announcement, Fraport said it is maintaining the financial guidance for FY 2023 but now leaning on the upper end of its earlier targets.
As far as the Group EBITDA is concerned, Fraport said it now expects to reach the upper half of the previously projected range of between about €1,040 million and €1,200 million. Likewise, the Group result is now expected in the upper half of the projected range of between some €300 million and €420 million.
Meanwhile, passenger numbers in Frankfurt are expected to reach the middle range of the previously given projection of between at least 80% and up to 90% of traffic levels seen in 2019, when some 70.6 million passengers traveled via Germany's largest aviation hub.
Positive first-half figures
For the first half of 2023, Fraport said it achieved growth in all major key financial indicators during the first half of 2023 (ending June 30).
It noted that the increase was supported by higher passenger volumes across the Group's airports.
Fraport Group revenue rose by 33.8% year-on-year to €1,804.3 million in the first six months of 2023. The operating result or EBITDA (earnings before interest, taxes, depreciation, and amortization) was also up 17.9% to €481.4 million.
The Group's net profit climbed to €85.0 million in the reporting period. In the first half of the previous year, this key figure was still negative at minus €53.1 million due to a one-off effect.
"In the second quarter of 2023, the positive performance continued from the start of the year. We are seeing a sustained recovery in passenger demand across our portfolio of global airports. At our home base in Frankfurt, passenger numbers recovered to 80% of pre-crisis levels in the first half of 2023," said Dr Stefan Schulte, CEO of Fraport AG.
"We expect passenger traffic to further grow at Frankfurt Airport during the full year," he added.
Air cargo continued to slow in June
Fraport did not mention its projections for cargo, but June numbers earlier released showed a continued decline in air freight volumes at the airport — which is Europe's busiest cargo hub.
Air cargo throughput — comprising airfreight and airmail — in Frankfurt hit 160,047 metric tonnes in June, or 4.6% lower than the level seen in June last year.
Month-on-month, however, June's performance was slightly better than the 155,963 metric tonnes recorded in May.
"Cargo volumes in Frankfurt continued to decline in June 2023, reflecting the overall economic slowdown, Fraport, which operates FRA, said of the slowdown in cargo traffic last month.
Meanwhile, aircraft movements, in contrast, climbed by 8.4% year-on-year to 38,885 takeoffs and landings.