Fraport Sees Growing Prospects in Greek Airport Sector as Country Recovers from Pandemic

Justin Lee

Singapore

August 30, 2021

Frankfurt Airport 14140793075 1

Source: Wikimedia Commons

Fraport AG Frankfurt Airport Services Worldwide (Fraport) is the operator of Frankfurt Airport serving the city of Frankfurt in Germany.  Fraport’s main shareholders include the State of Hesse (31.3%), Stadtwerke Frankfurt am Main Holding GmbH (20.3%), Deutsche Lufthansa AG (8.4%).

The company is also listed on the Frankfurt Stock Exchange. Fraport’s International Activities & Services Segment includes the acquisition, operation, maintenance, development, and expansion of airports and infrastructure facilities abroad. This segment also includes consulting services in the “Operational Readiness and Airport Transfer” (ORAT) section. Outside of Frankfurt Airport, Fraport currently is a majority shareholder in the overseas airport subsidiaries below:

  • Airmall (100%)
  • Ljubljana Airport (100%)

    Source: Flickr

  • Fraport Brasil – Fortaleza (100%)
  • Fraport Brasil – Porto Alegre (100%)
  • Lima Airport Partners S.R.L. (80.01%)
  • Fraport Regional Airports of Greece (73.4%)
  • Fraport Twin Star Airport Management AD (60%)
  • Fraport TAV Antalya Management A.S. (50/51%)

While the COVID-19 pandemic had a negative impact on Fraport’s Frankfurt Airport business as well as its overseas business throughout most of the year 2020 as well as in H1 2021, there have been signs of an upward trend as a result of global travel and contact restrictions in Q2 2021.

Source: Fraport Analyst Presentation for Q2 2021

In Q2 2021, almost all the airport companies operated by Fraport Group saw more than a 100% increase in passenger traffic compared to the same period in 2020. As a result of the improvement on passenger traffic conditions in Q2 2021, total turnover for Fraport in the period saw a 70.7% increase to EUR 425.9mn from EUR 249.5mn in Q2 2020 while Fraport generated a positive EBITDA of EUR 295.1mn compared to a loss of EUR 106.5mn in Q2 2020. With the positive results from Q2 2021 offsetting the losses generated in Q1 2021, total turnover for Fraport in H1 2021 saw a 10.9% decline to EUR 810.9mn from EUR 910.6mn in H1 2020. More importantly. Fraport’s EBITDA for the period saw a significant increase to EUR 335.8mn from the EUR 22.6mn it generated in H1 2020.

Source: Fraport Interim Report Q2/6M 2021

In H1 2021, EBITDA from Fraport’s International Activities & Services segment increased by 258.7% to EUR 127.7mn. This translated into a 38.0% contribution to Fraport’s total EBITDA from this particular segment. In contrast, EBITDA from this segment contributed to 33.1% of Fraport’s total EBITDA in the same period in 2019.

Source: Fraport Interim Report Q2/6M 2021

Among Fraport’s fully-consolidated subsidiaries operating airports outside of Frankfurt Airport, Fraport Regional Airports of Greece , which generated EUR 60.1mn in EBITDA in H1 2021, contributed to 56% of the total EBITDA generated by these airport operators in this period.

Source: Fraport Interim Report Q2/6M 2021

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