Fraport Fiscal Year 2020: Income and Income Seriously Impacted by Covid-19 Pandemic

Adjusted functioning final result (EBITDA) stays a bit good, backed by price tag-saving steps – Organization realigned to be leaner and a lot more agile – CEO Schulte: “We’re observing the light-weight at the close of the tunnel” – Extensive-expression expansion perspectives keep on being intact

FRANKFURT, Germany, March 16, 2021 /PRNewswire/ — In the course of fiscal year 2020 (finished Dec 31), the Covid-19 pandemic seriously impacted monetary performance of the Fraport airport enterprise. Since of sharply slipping passenger visitors, both at Frankfurt Airport and across the Group’s airports globally, Group profits declined by a lot more than half in the reporting period of time. The Group outcome (web profit) dropped into damaging territory for the initially time in 20 years, achieving minus €690.4 million – despite intensive expense-saving actions.

Fraport AG’s executive board chairman, Dr. Stefan Schulte, reported: “We are looking back again on an exceptionally challenging calendar year 2020. Not like just about any other sector, aviation has been strike really hard by the Covid-19 pandemic. However, we are now looking at the mild at the finish of the tunnel. The rollout of vaccination programs and better availability of testing possibilities present the stipulations for air targeted visitors to rebound – beginning this summer months at the hottest. People want to at last journey yet again, when airways are ready to ramp up their capacities. At the identical time, we have realigned our corporation to turn into leaner and a lot more agile. As a result, we will emerge even more robust from this historic disaster. As the operator of the Frankfurt Airport international hub and many thanks to our Team airports globally, we are perfectly positioned to thoroughly advantage from the air travel relaunch, when our extended-expression development perspectives continue being intact.”

Targeted traffic slump qualified prospects to adverse Team final result

In 2020, passenger traffic at Frankfurt Airport (FRA) dropped by 73.4 per cent year-on-12 months to 18.8 million vacationers. Passenger figures ended up also markedly down at Fraport’s Team airports all over the world, with declines ranging from minus 34 % at Xi’an Airport in China to minus 83 % at Slovenia’s Ljubljana Airport. Correspondingly, Group revenue reduced by 54.7 percent yr-on-year to €1.68 billion. Changing for revenue from building relating to capacitive capital expenditure at Fraport’s subsidiaries globally (based mostly on IFRIC 12), Group revenue was down 55.4 percent to €1.45 billion.

In reaction, Fraport noticeably reduced running expenditures (comprising price of components, staff expenses and other working costs) by nearly a 3rd, just after modifying for the added costs for personnel-reduction steps. This enabled Fraport to attain a a little bit optimistic EBITDA (in advance of specific merchandise) of €48.4 million in fiscal 2020, down 95.9 p.c 12 months-on-calendar year. When taking into account the excess expenditures of €299 million for staff-reduction measures, Team EBITDA in 2020 fell to minus €250.6 million (2019: €1.18 billion). Group EBIT slipped to minus €708.1 million (2019: €705. million), while the Group outcome (internet income) amounted to minus €690.4 million (2019: €454.3 million).

Expenditures and investments lowered markedly

Fraport has taken different measures at all ranges to minimize charges amid the Covid-19 pandemic. By getting rid of costs not essential for functions, Fraport is preserving non-employees costs (for components and services) of involving €100 million and €150 million annually. Concurrently, Fraport downsized or canceled a selection of investments, particularly at its Frankfurt dwelling base – as a result reducing connected capital expenditure by €1 billion in excess of the medium and extensive-term. Fraport is continuing development of the new Terminal 3 at Frankfurt Airport to satisfy the predicted lengthy-expression demand from customers. Even so, the time body for building the new terminal has been extended. Terminal 3 – comprising the main making with Piers G, H and J – is now scheduled to turn out to be operational in 2026.

A leaner and more agile corporation

In addition to value-saving actions with quick impact, Fraport has started out adjusting its over-all company business and structure to make the business leaner and more agile. This realignment contains some 300 actions aimed at streamlining processes, bundling functions and building a leaner and extra adaptable company framework. In a socially liable manner, Fraport will be slicing about 4,000 jobs mainly by the conclude of 2021 – therefore lessening staff fees by up to €250 million in comparison to 2019. About 2,200 of planned staff members reductions ended up previously understood throughout 2020. In addition, some 1,600 employees have agreed to depart the firm under a redundancy plan consisting of severance deals, early-retirement schemes and other measures. More staff reduction will be reached by means of typical staff members fluctuation.

Fraport will continue on to run a limited-time functioning plan (Germany’s Kurzarbeit software) with the aim of quickly minimizing personnel expenses. Considering the fact that the next fifty percent of fiscal 2020, about 80 percent of staff at the Fraport AG mum or dad company and other key Team providers in Frankfurt have been operating on a quick-time foundation. This consists of an typical reduction in working time of about 50 per cent calculated in conditions of offered hours. The brief-time operating plan also delivers Fraport with the required adaptability to raise staff concentrations speedily the moment air visitors rebounds.

Fraport’s liquidity reserves elevated

Fraport elevated about €2.9 billion in extra funding during fiscal 2020. With above €3 billion in dollars, fully commited credit rating strains and other funding offered, the corporation is properly positioned to meet the current crisis and make the needed investments for the potential. Fraport will keep on to acquire edge of the money marketplace to retain a higher degree of liquidity.


For the existing organization calendar year, the Fraport executive board forecasts targeted traffic at Frankfurt Airport to array from underneath 20 million up to 25 million passengers. Group revenue is envisioned to attain somewhere around €2 billion in 2021. The organization is forecasting Group EBITDA to variety between about €300 million and €450 million. Team EBIT is expected to be marginally destructive, though the Group result (net profit) will also keep on being in damaging territory. Equally of these essential performance indicators, however, will markedly strengthen when compared to 2020. In look at of the huge ongoing impact of the Covid-19 pandemic and the expected adverse Team result, Fraport’s government board will suggest to the Supervisory Board and the AGM, like in fiscal 2020, not to distribute a dividend for the latest 2021 economical calendar year.

Print-high-quality photographs of Fraport AG and Frankfurt Airport are available for absolutely free downloading by way of the picture library on the Fraport World-wide-web web-site. For Tv information and info broadcasting uses only, we also offer free footage material for downloading. If you desire to fulfill a member of our Media Relations workforce when at Frankfurt Airport, please do not hesitate to call us. Our contact particulars are accessible in this article.

Fraport AG
Torben Beckmann
Company Communications
60547 Frankfurt, Germany
Telephone: +49 69 690-70553
E-mail: [email protected]

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