Fraport retail grows as profits slip

Gavin Lipsith

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The German airports group reports a 5.7% drop in profits, while earnings in its retail and properties division grows 9.5% in the second quarter

German airports group Fraport has reported increased earnings in its retail and properties division for the second quarter of 2007. The owner of Frankfurt International airport reported a 9.5% increase in the division’s EBITDA, to €91.4m ($125.8m), driven by new shop openings

The growth comes despite slowing traffic growth and increased security costs, which the group blamed for a 5.7% drop in overall profits for the second quarter of the year. Fraport said that it expected traffic through Frankfurt International airport to expand by 1.5-2% for the full year.

Fraport operates three other German airports as well as Antalya International airport and Lima’s Jorge Chávez International airport. It also has airport management contracts at Delhi and Cairo airports, and bought a 24.5% stake in Xian airport in China in April.