MYTILENE – Fraport Greece on Wednesday 1st November, presented the plans for the development of Mytilene airport during an event that was attended by representatives of local authorities and local stakeholders. The event provided the opportunity for an open and productive dialogue for all the issues related to the airport’s future and the tourism development of the island in general. Fraport Greece is implementing a series of events at the 14 regions that the airports serve to develop close contacts and relationships that are based on trust and transparency, with local stakeholders.
Alexander Zinell, Fraport Greece, stated: “Our presence in the island of Lesvos today is not a typical visit. We have committed to a productive and open dialogue with the local community and this is what we are here to do. The vital works at the “Odysseas Elytis” airport, which will start immediately, will radically increase its capacity and upgrade the overall experience of passengers and visitors. The most important is that we invest in a new, modern terminal building, that will meet the needs of the residents and the expectations of Lesvos’ visitors. Our goal is to contribute for Lesvos to gain the position it deserves among the most popular Greek destinations”.
The plans presented by Fraport Greece include the construction of a new terminal, a new fire station, new Waste Water Treatment Plant and a new apron. The total size of the terminal will triple in comparison to todays reaching 7.185 m2. Significant interventions for the improvement of services will also be implemented, including: 29% increase in Check-in desks and 50% increase in security lanes.
Fraport Group Interim Report – 3rdQ and Nine Months 2017: Significant Growth in Traffic at All Group Airports
The Fraport Group closed the first nine months (ending September 30) of the 2017 financial year with a significant 13.7 percent rise in Group revenue to 2.23 billion euros. At Frankfurt Airport (FRA), growth was fueled, in particular, by higher revenue resulting from the noticeable jump in passenger traffic, higher proceeds from the retail business and security services, as well as the sale of property sites. In addition, the Group’s international business contributed considerably to revenue growth, primarily due to the operational takeover of the 14 Greek airports, as well as to revenue gains at the Group’s Lima Airport company.
Operating earnings (EBITDA) increased by 19.4 percent to 807.7 million euros, while the Group result grew by 43.3 percent to 342.3 million euros. The reason for this was the improved financial result (minus 65.6 million euros compared to minus 79.0 million euros in the same period of 2016), mainly due to the Group’s Antalya subsidiary which posted significantly better earnings (plus 21.2 million euros compared to minus 8.8 million euros in the first nine months of 2016, on the basis of Fraport’s 50 percent share). Operating cash flow also rose markedly by 37.3 percent year-on-year to 687.4 million euros. Free cash flow developed similarly, expanding by 25.1 percent to 388.0 million euros.
Thus, Fraport AG’s executive board chairman, Dr. Stefan Schulte, delivered a correspondingly positive assessment of the Group’s business performance: “After the first nine months of the year, we are absolutely on course to achieve our annual targets. The solid performance delivered by our Group airports made a particularly important contribution to the rising result. With the successful operational takeover of the 14 Greek airports and the double-win of two airport concessions at Fortaleza and Porto Alegre in Brazil, we are systematically expanding our global airport business. Furthermore, we are also achieving solid growth in Frankfurt again, where we made the necessary strategic decisions at the right time.”
During January to September 2017, Frankfurt Airport welcomed about 48.9 million passengers – representing a 4.6 percent jump year-on-year and a new traffic record for this nine-month period. A new daily traffic record was also reached on September 29, when 225,801 passengers passed through the Frankfurt Airport global hub.
On the basis of traffic development to date, Fraport’s executive board expects passenger traffic at Frankfurt Airport to grow by about five percent for the entire 2017. Following the completion of the first nine-months of the year, the executive board reaffirms the company’s forecast for net assets, financial position and results of operations in full-year 2017 – especially because start-up costs for Fraport’s two new airports in Brazil will be booked mainly in the fourth quarter. Accordingly, Fraport expects Group revenue (including the new Greek airports), to reach up to 2.9 billion euros, with EBITDA in the range of about €980 million to 1,020 million euros, and the Group result in the range of 310 million euros to 350 million euros.
Here is a summary of the results for Fraport’s four business segments:
- Aviation: Segment revenue rose by 4.0 percent to 721.0 million euros in the first nine months of 2017. Besides the growth in passenger traffic at FRA, this segment was positively impacted by higher proceeds from airport fees (rose by an average of 1.9 percent as of January 1, 2017), and higher income from security services. Segment EBITDA increased by 4.6 percent to 201.3 euros million, despite additional personnel expenses. Lower depreciation and amortization resulted in segment EBIT of 113.7 million euros, up 15.4 percent year-on-year.
- Retail & Real Estate: Segment revenue improved by 6.3 percent to 394.2 million euros in the reporting period. This was due mainly to higher proceeds from property sales and the increased passenger volume at FRA, which had a positive effect on retail revenue and car-parking income. Net retail income per passenger decreased by 2.1 percent year-on-year to 3.31 euros (previous year: 3.38 euros). Factors contributing to the decline in indicator included the depreciation of various currencies against the euro, as well as the changing passenger mix at FRA. Passengers flying on European routes tend to spend less than passengers on intercontinental routes – with European traffic growing particularly strongly at FRA. But in total, retail revenue grew further. Segment EBITDA grew slightly by 2.2 percent to 288.2 million euros, while segment EBIT climbed by 3.2 percent to 225.6 million euros.
- Ground Handling: In the first three quarters of 2017, this segment posted a slight 0.9 percent gain in revenue to 482.6 million euros, due to higher income from Ground Services at Frankfurt Airport. Personnel costs rose as a result of pay-scale increases and higher provisions for transforming the personnel structure. As a result, segment EBITDA fell by 15.1 percent to 38.1 million euros, while segment EBIT dropped by a noticeable 45.2 percent to 8.5 million euros.
- External Activities & Services: Segment revenue surged by 51.2 percent to 631.0 million euros in the first nine months of 2017, driven particularly by Fraport Greece (up 181.4 million euros) and the Group’s operation in Lima, Peru (up 19.7 million euros). Despite rising expenses, segment EBITDA saw a significant increase of 77.8 percent to 280.1 million euros. Increased depreciation and amortization, which partly resulted from Fraport Greece and Fraport U.S.A., led to segment EBIT of 192.4 million euros- growth of 97.9 percent.