Fraport Interim Report - Third Quarter 2011: Fraport Reports Continuing Traffic and Business GrowthBy Fraport Ag, PRNE
Wednesday, November 9, 2011
FRANKFURT, Germany, November 10, 2011 -
Outlook for Full Year 2011 Reaffirmed
Fraport AG - the owner and manager of Frankfurt Airport (FRA) - continued its growth trend in the first nine months of 2011. Supported by rising traffic figures at FRA and particularly by Fraport’s international majority holdings, the Group’s balance sheet result improved noticeably for the nine months ending September 30. ”The recent opening of the fourth runway will allow Frankfurt Airport to increase its capacity further. This capacity increase is necessary for the entire Frankfurt/Rhine-Main metropolitan region to maintain its strong position as Germany’s economic powerhouse. This will also enable Frankfurt Airport to maintain its leading role in the intense competition with other major hub airports,” said Fraport AG executive board chairman Dr. Stefan Schulte, at the presentation of financial results for the first three quarters of 2011.
Serving approximately 76 million passengers in the January-to- September 2011 reporting period - the Group’s majority-owned airports recorded a 9.8 percent increase year-on-year. Frankfurt Airport achieved new historic record highs with passenger figures rising by 6.6 percent to 42.7 million passengers and accumulated maximum takeoff weights (MTOWs) increasing by 5.2 percent to 22 million metric tons. Aircraft movements at Frankfurt climbed 4.9 percent to 366,180 takeoffs and landings. The Group’s foreign airports - Antalya (AYT) in Turkey, Burgas (BOJ) and Varna (VAR) in Bulgaria, and Lima (LIM) in Peru - also continued to register strong growth rates. In the first nine months of 2011 Frankfurt Airport’s cargo throughput reached 1,668,238 metric tons handled, a decline of approximately 0.5 percent compared to the record value reached in the previous year.
Group revenue advanced by 9.4 percent to €1.79 billion, while Group EBITDA jumped by 14.0 percent - almost €80 million - to €646.3 million. The Group result soared by €64 million to €225.6 million. Correspondingly, basic earnings per share rose by €0.67 to €2.34 year-on-year.
In view of the positive business development, Schulte reaffirmed the outlook for the entire 2011 business year: “The figures recorded in the first three quarters of the year clearly confirm our forecast for 2011. Passenger growth is expected to reach the upper end of the 4 to 7 percent forecast range by the end of the current year. Group revenue will rise to more than €2.3 billion, while EBITDA is expected to hit the upper end of the 10 to 15 percent forecast range.”
However, Schulte also indicated clearly that an increase in the company’s profitability is necessary for financing Fraport’s ongoing extensive investments at Frankfurt Airport: “Fraport continues to invest almost €1 billion per year at its Frankfurt Airport home base. The costs related to these privately financed investments require increased profitability. Depreciation and amortization, as well as interest expenses related to the new runway, could only be fully taken into account after Runway Northwest was inaugurated on October 21 of this year. Thus, the Interim Report for the first nine months of 2011 does contain these figures.”
Fraport’s CEO also stressed that the Group’s other key infrastructure projects at FRA - the new Pier A-Plus (at Terminal 1) and the new Terminal 3 - are progressing on schedule. ”The new Runway Northwest has already led to a markedly improved punctuality rate at Frankfurt Airport. Furthermore, it has created the necessary capacity reserves for sustainable growth in the future. The opening of the new Pier A-Plus scheduled for mid-2012 will be a further quantum leap in quality improvement for our passengers,” explained Schulte while commenting on the already positive data concerning customer satisfaction. “Customer surveys conducted in the past two years have shown that our passengers and visitors are increasingly satisfied with the service we offer. We are on the right track and will thus remain fully committed to our Great to Have You Here service excellence program,” continued Schulte.
In conclusion, Schulte focused on the issue of airport-related noise in Frankfurt, underscoring that Fraport is fully aware and concerned about how aircraft noise affects the Frankfurt/Rhine-Main region. Fraport has adopted an immediate action program of “passive” noise abatement measures, which provides for anticipated compensation payments related to noise protection for buildings. With this program, Fraport has gone far beyond any legal requirements. Furthermore - as part of Fraport’s CASA program - homeowners living in areas particularly affected by aircraft noise (where aircraft fly at a particularly low altitude) are entitled to an additional compensation or may even offer Fraport their home for sale. Fraport also plans further to develop its “active” noise abatement program. And finally, the aviation industry has created a task force in cooperation with the transport ministry and the Umwelthaus to examine all possibilities for reducing air traffic noise - while taking into account the existing runway system and the necessary capacity increase at FRA - by utilizing noise-limiting air space structures and flight routes. ”Our goal here is to make real progress in the interests of the people in the Frankfurt/Rhine-Main region, and I am convinced we will succeed,” stressed Schulte.
For Further Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. - Senior Mgr. International Press & PR
International Spokesman, Press Office (Dept. UKM-PS),
Corporate Communications, 60547 Frankfurt am Main, Germany
Tel.: +49-69-690-78547; E-mail: email@example.com; Internet: www.fraport.com
Tags: Frankfurt, Fraport AG, Germany, November 10