High single-digit nine-month retail growth for Fraport; slowdown in traffic

By Andrew Pentol |

Stefan-Schulte-Fraport

Dr. Stefan Schulte, Executive Board Chairman, Fraport.

German airport operator Fraport has reported an 8.8% increase in retail revenue from €149m in the first nine months of 2018 to €162m in the same period this year. This was despite a slowdown in passenger traffic during the course of the year, which Dr. Stefan Schulte, Executive Board Chairman, Fraport attributed to the weaker global economy, consolidation of the European aviation market and regulatory interventions by the German government among other elements.

Retail spend per passenger during the nine-month period this year, including the DTV (Gebr. Heinemann) joint venture rose from €3.02 in the first nine months of 2018 to €3.19 during the same period this year. In the third quarter, retail spend per passenger (including the DTV joint venture) was €3.

Excluding the DTV joint venture, retail spend per passenger rose 6.1% to €3.14 from €2.96 in the previous corresponding nine-month period last year. The figure in the third quarter was €2.95. Top spending nationalities in the first nine months of 2019 were the Chinese, Russians, South Koreans, Vietnamese and Japanese.

DOUBLE-DIGIT GROUP REVENUE RISE

According to Fraport, Group revenue rose 12% to €2.85bn year-on-year during the nine-month period. Proceeds from ground handling services, airport and infrastructure charges, security services, retail, parking and advertising were the key contributors. Group EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by 7.7% to €948.2 million in the nine-months. Retail EBITDA was up 13%.

Passenger traffic at Frankfurt Airport increased by a solid 2.3% to about 54.2 million during the first nine months of the year. But this growth momentum, however, decelerated during the year. Based on current planning by the airlines, FRA will experience a 4% reduction in flight numbers for the 2019/2020 winter schedule (effective 27 October 2019) compared to the same schedule in the previous year. This reduction is due to the 5.6% decline in European traffic. Scheduled intercontinental flights will climb by around 2%.

Fraport-graph-1-cropped

Excluding the DTV joint venture, retail spend per passenger rose 6.1% to €3.14 in the first nine months of 2019.

Schulte commented: “After a phase of rapid growth, airlines are cutting back their plans and thinning out their winter schedules. Nevertheless, we are maintaining our full-year outlook for the 2019 business year — also backed by the ongoing positive performance of our Group airports worldwide. Thanks to Fraport’s large and diversified portfolio of international airports, we are well positioned for the future.”

Fraport-Resutls-3-cropped

Spend per passenger amounted to €3.19 in the first nine months of the year.

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