Retail revenue declines for Fraport AG
By Charlotte Turner |
Fraport AG’s Retail & Real Estate revenue declined by 1.1% YOY to €106.5m in the first quarter of 2014 mainly attributable to fewer passenger on some intercontinental routes. “Compared to travellers flying on European routes, intercontinental passengers spend on average much more on purchasing goods and services while at the airport,” says the operator.
Net retail revenue per passenger also slipped by 1.3% to €3.69. Despite lower revenue, segment EBITDA rose by 2.5% or €2m to €82.4m, resulting mainly from lower operating expenses for energy supply and utility services.
On a more positive note, Fraport AG’s Group revenue saw underlying growth of €5.4m or 1.1%, rising to €517.3m. Group EBITDA (earnings before interest, tax, depreciation and amortization) jumped by €13mor 10.7% to €134.5m, while the Group result advanced by €1.5m to €6m year-on-year.
At Frankfurt Airport (FRA), Fraport AG’s home base, passenger numbers increased by 2% in the first three months of 2014, while aircraft movements (takeoffs and landings) climbed by 1.1% – despite a large number of strike -related flight cancellations.
Across the Group, passenger figures also continued to grow at the airports of Lima (LIM) in Peru, Antalya (AYT) in Turkey, St. Petersburg (LED) in Russia, and Xi’an (XIY) in China.
Fraport AG’s Executive Board Chairman, Dr. Stefan Schulte, said: “Our first-quarter financial results are a positive start for the Fraport Group’s 2014 business year. Also because of the ongoing growth trend in air traffic demand, we expect the Group’s positive development to continue. We thus confirm our full-year outlook and expect overall performance in 2014 to exceed the levels reached last year.”
Revenue in Fraport’s Aviation business segment rose by 2.4% to €189.4m in the first three months of 2014. This gain was primarily driven by Frankfurt Airport’s passenger growth as well as an increase in airport charges by an average of 2.9% (effective January 1, 2014).
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