Fraport reports further revenue decrease with euro 19 million

Passenger traffic at Frankfurt Airport is expected to fall by over 70% year-on-year to around 18 to 19 million. Fraport has reported a net loss of €537.2m in the nine months of 2020, while revenue also plunged by 53.8% year-on-year to €1.32bn.

The company has set aside €280m for measures aimed at lowering personnel costs, while it is also cancelling or deferring investments not essential for operations.

It said it has reduced operating expenses by a third in the reporting period, however EBITDA dropped by 94.5% to €51.8m.

Fraports short-time working schedules affects 18.000 staff

Fraport also noted that by cutting up to 4,000 jobs until the end of 2021, its personnel costs at Frankfurt Airport will be reduced by €250m annually. The group is also going to continue to operate a short-time working scheme, adding that since Q2, up to 18,000 of the approximately 22,000 people employed at all of the group’s companies in Frankfurt have been working on that basis.

The group has also raised about €2.7bn in additional financing, increasing its liquidity reserves. Looking ahead, the group’s executive board expects passenger traffic at Frankfurt Airport to fall by more than 70% year-on-year to approximately 18 to 19 million passengers. Group revenue is expected to drop by up to 60% year-on-year.

Fraport has reduced annual costing with euro 400 million per year

Fraport CEO Stefan Schulte said: “Our industry continues to navigate through a very difficult situation. With infection rates rising again across Europe in the past few weeks, governments have largely reintroduced or widened travel restrictions.

“Airlines are downsizing their flight schedules even more. Currently, we do not expect a recovery until at least the summer season of 2021. In response, we are continuing to realign our company to become significantly leaner and more agile – to achieve a sustainable reduction of our cost base.

We are well on track to achieving this target. Measures implemented at our Frankfurt home base will help us reduce personnel and material costs in the medium term by up to €400 million per year. This corresponds to about 25 percent of our total operating expenses recorded at the Frankfurt location during the 2019 business year.”