Fraport Fiscal Year 2020: Revenue and Financial gain Severely Impacted by Covid-19 Pandemic

Altered working outcome (EBITDA) continues to be slightly good, backed by charge-conserving measures – Firm realigned to be leaner and far more agile – CEO Schulte: “We’re observing the light at the stop of the tunnel” – Prolonged-time period development perspectives continue being intact

FRANKFURT, Germany, March 16, 2021 /PRNewswire/ — Through fiscal year 2020 (finished Dec 31), the Covid-19 pandemic severely impacted monetary performance of the Fraport airport organization. Since of sharply slipping passenger traffic, both at Frankfurt Airport and throughout the Group’s airports around the world, Team income declined by more than 50 percent in the reporting time period. The Group consequence (internet revenue) dropped into destructive territory for the initially time in 20 yrs, reaching minus €690.4 million – in spite of intensive value-saving measures.

Fraport AG’s government board chairman, Dr. Stefan Schulte, mentioned: “We are searching back on an extremely demanding calendar year 2020. Compared with pretty much any other market, aviation has been strike tough by the Covid-19 pandemic. Nevertheless, we are now seeing the mild at the conclude of the tunnel. The rollout of vaccination applications and increased availability of tests solutions deliver the prerequisites for air site visitors to rebound – setting up this summer time at the most up-to-date. Folks want to ultimately vacation once more, when airways are ready to ramp up their capacities. At the identical time, we have realigned our business to develop into leaner and extra agile. Thus, we will emerge even much better from this historic disaster. As the operator of the Frankfurt Airport world wide hub and thanks to our Team airports all over the world, we are effectively positioned to absolutely advantage from the air vacation relaunch, although our extended-expression advancement views continue to be intact.”

Targeted visitors slump potential customers to unfavorable Team outcome

In 2020, passenger targeted traffic at Frankfurt Airport (FRA) dropped by 73.4 percent calendar year-on-yr to 18.8 million tourists. Passenger quantities have been also markedly down at Fraport’s Group airports globally, with declines ranging from minus 34 per cent at Xi’an Airport in China to minus 83 percent at Slovenia’s Ljubljana Airport. Correspondingly, Group revenue reduced by 54.7 percent year-on-12 months to €1.68 billion. Changing for profits from building relating to capacitive cash expenditure at Fraport’s subsidiaries globally (based mostly on IFRIC 12), Group revenue was down 55.4 p.c to €1.45 billion.

In response, Fraport significantly lowered functioning expenditures (comprising price tag of products, personnel charges and other operating charges) by just about a 3rd, just after changing for the additional expenses for personnel-reduction actions. This enabled Fraport to accomplish a marginally constructive EBITDA (right before distinctive things) of €48.4 million in fiscal 2020, down 95.9 % calendar year-on-12 months. When having into account the additional fees of €299 million for staff-reduction steps, Group EBITDA in 2020 fell to minus €250.6 million (2019: €1.18 billion). Team EBIT slipped to minus €708.1 million (2019: €705. million), though the Team result (internet gain) amounted to minus €690.4 million (2019: €454.3 million).

Costs and investments decreased markedly

Fraport has taken several measures at all degrees to minimize costs amid the Covid-19 pandemic. By removing costs not vital for functions, Fraport is preserving non-staff charges (for materials and solutions) of concerning €100 million and €150 million annually. Concurrently, Fraport downsized or canceled a range of investments, particularly at its Frankfurt residence base – as a result lessening linked money expenditure by €1 billion above the medium and lengthy-expression. Fraport is continuing design of the new Terminal 3 at Frankfurt Airport to meet the predicted extended-term demand from customers. However, the time frame for creating the new terminal has been prolonged. Terminal 3 – comprising the most important setting up with Piers G, H and J – is now scheduled to develop into operational in 2026.

A leaner and more agile organization

In addition to price tag-conserving actions with quick outcome, Fraport has began changing its in general small business firm and structure to make the corporation leaner and more agile. This realignment contains some 300 actions aimed at streamlining procedures, bundling capabilities and generating a leaner and additional flexible corporate composition. In a socially responsible way, Fraport will be slicing about 4,000 work generally by the conclusion of 2021 – consequently lessening personnel expenses by up to €250 million as opposed to 2019. About 2,200 of prepared team reductions were being now understood all through 2020. In addition, some 1,600 employees have agreed to go away the business underneath a redundancy software consisting of severance offers, early-retirement strategies and other steps. Further more staff reduction will be achieved via normal staff fluctuation.

Fraport will proceed to run a short-time performing plan (Germany’s Kurzarbeit application) with the aim of temporarily reducing personnel costs. Given that the next fifty percent of fiscal 2020, about 80 per cent of employees at the Fraport AG father or mother business and other big Group organizations in Frankfurt have been operating on a brief-time foundation. This requires an ordinary reduction in working time of about 50 p.c calculated in conditions of available hours. The short-time operating scheme also offers Fraport with the essential adaptability to raise employees concentrations promptly once air traffic rebounds.

Fraport’s liquidity reserves increased

Fraport lifted about €2.9 billion in added financing during fiscal 2020. With in excess of €3 billion in dollars, fully commited credit score lines and other financing available, the corporation is well positioned to fulfill the present crisis and make the necessary investments for the long run. Fraport will proceed to consider advantage of the funds marketplace to manage a superior diploma of liquidity.

Outlook

For the latest business enterprise yr, the Fraport govt board forecasts targeted visitors at Frankfurt Airport to vary from beneath 20 million up to 25 million travellers. Team revenue is expected to get to somewhere around €2 billion in 2021. The business is forecasting Group EBITDA to variety between about €300 million and €450 million. Group EBIT is envisioned to be a bit adverse, though the Team end result (net earnings) will also stay in detrimental territory. Each of these key overall performance indicators, having said that, will markedly strengthen in comparison to 2020. In see of the large ongoing effects of the Covid-19 pandemic and the predicted destructive Group consequence, Fraport’s govt board will propose to the Supervisory Board and the AGM, like in fiscal 2020, not to distribute a dividend for the present 2021 fiscal yr.

Print-high quality photographs of Fraport AG and Frankfurt Airport are obtainable for absolutely free downloading through the photograph library on the Fraport Internet web-site. For Television set information and details broadcasting applications only, we also present free of charge footage material for downloading. If you would like to meet a member of our Media Relations group when at Frankfurt Airport, remember to do not wait to speak to us. Our get hold of facts are available listed here.

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

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