Frankfurt Airport operator Fraport narrows annual passenger growth forecast, shares tumble
Adds share move, outlook details in paragraph 1, analyst comment on traffic outlook in paragraphs 3-4, analyst comment on Q2 EBITDA beat in paragraphs 8-9
By Anastasiia Kozlova and Amir Orusov
Aug 6 (Reuters) - Frankfurt Airport operator Fraport FRAG.DE narrowed its full-year passenger growth forecast, sending its shares 2.3% lower on Tuesday.
The company reiterated its outlook for the full year but said it now expects passenger numbers in Frankfurt to reach the lower-endof its previouslyprojected range of 61-65 million, compared to 59.4 million in 2023.
The new forecast translatesinto hardly any passenger growth in the second half, saidOliver Wojahn, an analyst at Mwb Research.
"So it is becoming clearer that the pretty steep increase in airport fees (+9.5%) is holding back passenger growth at Frankfurt airport," Wojahn added.
The company cited a slowdown in the number of passengers, with growth declining to4.5% in the second quarter, compared with 10.4% in the first quarter.
Fraport, which manages or operates 29 airports, including Delhi and New York, said passenger numbers at Frankfurt Airport rebounded to about 86% of pre-pandemic levels in the first-halfof 2024.
The group's earnings before interest, tax, depreciation and amortization (EBITDA)rose 17.8% to 567.1 million euros ($621.1 million) in the six-month period ended June 30, from 481.4 million a year earlier, buoyed by growing demand for air travel.
Meanwhile, JohannesBraun, an analyst at Stifel, said a3% beat in Fraport's EBITDA in the second quarter was due toa 9 million euro flooding compensation that Fraport received for damages at itsPorto Alegre airport in Brazil.
"While this is a one-off, we still rate it positively that the compensation for those damages come in timely," Braun added.
($1 = 0.9131 euros)
Reporting by Anastasiia Kozlova and Amir Orusov; Editing by Rashmi Aich and Sonia Cheema
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
