Fraport Sees Falling 2012 Profit

 

Fraport Sees Falling 2012 Profit

Fraport Sees Falling 2012 Profit

Fraport said it now saw operating profit at its aviation business, which runs Frankfurt airport, declining this year as it spends money on measures to reduce noise from a new runway opened last year.

Fraport still affirmed its 2012 outlook on Wednesday, saying it expected revenue of over EUR€2.5 billion (USD$3.1 billion) and an increase in operating profit of at least 5 percent in 2012. Net profit will be roughly at the year-earlier level, it said.

Fraport earlier this year agreed to contribute EUR€15 million – EUR€20 million to a fund that will finance noise reduction measures and raised the number of houses it could buy from homeowners wanting to dump their properties to get away from low-flying planes.

Second-quarter earnings before EBITDA eased 1.1 percent to EUR€227.4 million, as growing passenger numbers at Frankfurt airport offset a drop in demand for air freight services.

Freight volumes in Frankfurt have been hurt by a night flight ban imposed at the end of October as well as by the European sovereign debt crisis, with volumes down 9.9 percent in the first half of the year.

But passenger volume rose 3.4 percent to 27.4 million in the six months, thanks partly to a new runway opened last year. In July, Frankfurt airport handled 3.7 percent more passengers than a year earlier, Fraport said.

Second-quarter group revenue was down 0.2 percent at EUR€615.7 million.

Fraport warned, however, of increasing uncertainty surrounding the economic situation and did not repeat an earlier outlook for rising 2013 revenue, operating profit and Frankfurt passenger numbers.

(Reuters)



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