Bruce Barnard, Special Correspondent | Aug 08, 2012 10:56AM EDT
Frankfurt airport operator Fraport AG’s first half net profit slumped 17.4 percent from a year ago to 86.9 million euros ($107 million) on high investment outlays and a sharp drop in freight traffic at Europe’s second largest air cargo hub.
Revenue dipped 2.5 percent to $1.4 billion and earnings before interest, tax, depreciation and amortization was 2 percent higher at $449.8 million.
Second quarter EDITDA slipped 1.1 percent to $329 million and revenue was down 0.2 percent at $757 million.
The weak global economy and Europe’s sovereign debt crisis were mainly to blame for freight traffic declining, 110,000 metric tons, or 9.9 percent, in the first half to just over one million metric tons.
A night flight ban imposed at the end of October, which mostly affects Lufthansa Cargo’s freighter flights, also contributed to the decline, Fraport said.
Passenger numbers, by contrast, grew 3.4 percent to a first half record of 27.4 million, despite strikes in February and March which led to the cancellation of 2,150 flights.
Cargo traffic at the group’s majority owned airports — Frankfurt; Antalya, Turkey; Lima, Peru; and Varna and Burgas in Bulgaria — decreased 9 percent from the first half of 2011 to 1.13 million tons.
Fraport CEO Stefan Schulte said while the air transport industry is facing a “difficult period” the company still expects full year revenue to exceed $3.1 billion and EBITDA to grow by 5 percent. Net income should equal last year’s $295 million.
Contact Bruce Barnard at brucebarnard47@hotmail.com.