Fraport Group Sees Record-breaking 2023 Fiscal Year

A view across Frankfurt Airport at sunset.
Photo Credit: Fraport

In 2023, Fraport, the airport operator, marked a significant milestone with record highs in revenue and operating results (EBITDA).

The driving force behind this success was the continuous recovery in passenger numbers, particularly evident in airports outside Germany within the Fraport Group.

This surge in performance has propelled the Group’s net profit to an impressive €430.5 million.

Revenue and EBITDA Achievements

The annual revenue for the Fraport Group soared by 25.2 percent to reach €4.00 billion, a remarkable feat compared to the previous fiscal year.

Adjusting for specific factors, such as construction and expansion revenues, the revenue stood at €3.49 billion. This represents a 21.7 percent year-on-year increase.

Correspondingly, the EBITDA also reached a new high of €1.20 billion, representing a 16.9 percent year-on-year growth. Such financial milestones indicate a robust performance for the Group.

Frankfurt Airport
Photo Credit: Fraport.

Rising Passenger Numbers

Passenger volumes continued their upward trajectory across most of Fraport’s global airports in 2023. Frankfurt Airport, the flagship hub, witnessed a 21.3 percent increase in passenger numbers, totaling 59.4 million passengers.

Notably, subsidiary airports outside Germany experienced even stronger growth, with Greek gateways and Antalya Airport in Turkey achieving significant milestones.

Cargo Volume Challenges

Despite the positive trends in passenger traffic, cargo volumes in Frankfurt faced challenges, declining by 3.9 percent to approximately 1.9 million metric tons.

Factors contributing to this decline include airspace restrictions and sluggish economic growth influenced by global geopolitical tensions.

However, Frankfurt Airport maintained its position as Europe’s primary cargo hub.

Insights from CEO Dr. Stefan Schulte

Dr. Stefan Schulte, CEO of Fraport AG, provided insights into the Group’s financial performance. He highlighted the dynamic development of traffic throughout 2023.

“Our home-base, Frankfurt Airport, continued to experience the strongest recovery of all major German airports. However, with passenger levels at 84 percent of pre-crisis levels, Frankfurt still lagged clearly behind other European competitors.”

In particular, he noted the benefits derived from the diverse international portfolio. Despite Frankfurt Airport’s significant recovery, challenges persisted, primarily due to escalating location-related costs.

A view across the busy tarmac area at Frankfurt Airport
Photo Credit: Fraport

Challenges Faced by Frankfurt Airport

High regulatory levies and fees posed challenges for Frankfurt Airport, hindering its competitiveness compared to other European counterparts.

Dr. Schulte stressed the need for governmental support to mitigate these challenges and facilitate the transition to carbon-neutral operations.

In response to current market dynamics, Fraport Group refined its corporate strategy, focusing on three strategic areas for the next six years.

These include growth and sustainability, efficiency and innovation, and becoming an employer of choice.

The aim is to achieve ambitious financial targets by 2030, signaling a forward-looking approach by the Group.

Aerial view of Frankfurt Airport
Photo Credit: Fraport

Fraport Outlook for 2024

Looking ahead, Fraport aims to continue its growth trajectory while prioritizing sustainability initiatives.

The company plans to leverage technological advancements to enhance operational efficiency and remain competitive in the aviation industry. Moreover, efforts to attract top talent underscore Fraport’s commitment to its workforce.

For the fiscal year 2024, Fraport anticipates further growth in passenger volumes at Frankfurt Airport, projecting figures between 61 million and 65 million passengers.

Financially, the Group expects the EBITDA to range between €1,260 million and €1,360 million, with net profit estimated between €435 million and €530 million.

However, considering the ongoing high debt levels, dividend payments are unlikely. Fraport’s AG full Annual Report for the 2023 fiscal year is available here.

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By Len Varley - Assistant Editor 4 Min Read
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