Fraport AG sees 81.5% net profit increase in 2022

Germany-based Fraport AG saw a 2022 net profit increase of 81.5% year over year to 166.6 million euros ($176.7 million), surpassing the guidance it had set at the start of the year. WHY IT MATTERS: The increased profit is due to passenger traffic increase; cargo traffic decreased. Nevertheless, i n response to the rebound in passenger traffic, Frankfurt Airport (FRA) expanded its workforce by 8% YoY. THE BIG PICTURE: According to preliminary figures from Airports Council International (ACI), global passenger traffic increased 55.5% from January to November 2022 compared with the corresponding period in 2021. Air freight volume fell 6%. European airports recorded a 98.5% jump in passengers, according to ACI. European airports posted a below-average decline in air freight at 5.2%. BY THE NUMBERS: Fraport Group revenue climbed by 49% YoY to $3.39 billion, and group earnings before interest, taxes, depreciation and amortization (EBITDA) rose 36% YoY to $1.09 billion. Cargo throughput at FRA reached about 2 million tonnes, a 13.3% YoY decrease; Aircraft movements rose 45.9% YoY to 382,211 takeoffs and landings; and Passenger flights increased 57%, but freight traffic decreased 19% YoY. WHAT THEY’RE SAYING: Fraport Chief Executive Officer Stefan Schulte credited the rebound of passenger traffic for Fraport’s net profits increase. “We’re moving in the right direction,” Schulte said in a release. “ In the past fiscal year, we’ve seen particularly strong demand for air travel from leisure passengers and vacationers. Our Group airports worldwide also benefited from this trend. While demand was still restrained at the start of the year, passenger numbers in Frankfurt saw rapid growth of up to 300% from April onwards. In mid-2022, traffic surges with three-digit growth rates, combined with staff shortages, occasionally brought us to our limits when ramping up operations.” FRA did not disclose cargo details in the release or to Air Cargo Next . STATE OF PLAY: Schulte attributed the air cargo traffic decline to FRA’s discontinuation of air traffic with Russia in accordance with European Union measures related to the war in Ukraine. Also to blame are overall economic slowdown and decreased traffic with China due to the country’s zero-COVID-19 strategy, according to Schulte. NOTEWORTHY: So far, 2023 traffic is following 2022 trends. While FRA saw a 60.9% YoY increase in passengers in February, it saw a cargo traffic decrease of 11% YoY. FRA also attributed this decline to overall economic slowdown and discontinued air traffic to and from Russia. FRA also stated that, had it not been for the Feb. 17 airport strike organized by the trade union Ver.di , traffic would have been higher. FRA estimates passenger traffic in February would have had an approximately 69% YoY increase. FUTURE LOOK: Fraport aims for a yearly maximum of 50,000 tonnes of CO2 to be emitted in areas that fall under Fraport’s direct control in Frankfurt by 2030, Fraport announced. Previous plans were to reduce CO2 emissions to 75,000 tonnes by 2030. “This corresponds to a reduction of 78% compared to the 1990 reference year,” Schulte said. “Our goal is to become carbon-free across the group by 2045.” In 2022, Fraport AG lowered its CO2 emissions in Frankfurt 3.9% YoY to 113,199 tonnes. THE BOTTOM LINE: Even with a decline in cargo traffic, FRA remains the No. 1 cargo airport in Europe. Paris Charles de Gaulle Airport (CDG) was second, transporting about 1.9 million tonnes of cargo, a 3.5% decrease, in 2022.

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