Fraport expects increased earnings due to ‘profitable’ retail business

Nicole Mezzasalma

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A growth in traffic and investments in real estate are also forecast to boost revenues

Fraport Group expects a continuous improvement in EBITDA in coming years due to its “profitable retail division”, its real estate investments and an improved prediction for traffic growth. Fraport CEO Wilhelm Bender specifically cited the “positive effects of foreign commitments” – such as the expansion of the firm’s concessions at Antalya airport in Turkey and its increased stakes at Lima Jorge Chávez International airport.

The company is also keeping an eye out for increasing its presence in China. Bender said: “Through our investments in Xi’an airport we are going to profit from the growth of Chinese air traffic. Nevertheless, we have the clear goal of expanding our business in China in the future.”

Fraport CFO Matthias Zieschang said: “Despite a shortage of runway capacity in Frankfurt, we expect a constant improvement in EBIDTA in the coming years. Our strategy will focus on cutting costs. At the same time we will concentrate particularly, apart from the profitable retail division, on our real estate business.”