Fraport Profit Falls 20 Percent in 2009

Fraport AG, operator of Frankfurt airport, reported its 2009 net income slumped 20 percent from the previous year as the global economic downturn cut freight shipments at Europe's biggest air cargo hub.

But the company, which also owns airports in Bulgaria, Turkey and Peru, said it is bullish about a recovery in freight volume through 2010.

Frankfurt's lower passenger numbers also contributed to a slide in net profit from $240 million in 2008 to $215 million in 2009. Operating profit shrunk 19.2 percent to $398 million.

Revenue was down 6.1 percent at $2.7 billion against $2.9 billion in 2008 and earnings before interest, taxes, depreciation and amortization fell eight percent to $757 million.

"The best thing about last year's financial results is our outlook for 2010," said Fraport Chief Executive Stefan Schulte.

"Meanwhile, we are optimistic that we have risen from the trough of decline following the extremely high traffic fall at the beginning of 2009, which gradually improved quarter by quarter," Schulte said.

Frankfurt's cargo traffic soared 32.2 percent in January from a year ago to 157,637 metric tons, a new record for a January.

"We are doubly pleased by this bullish growth in air freight, which is always an early indicator of economic performance: as a clear signal for the German economy as well as the world economy …" Schulte said.

Fraport said it expects the growth trend in air cargo continued into February.

Air cargo traffic at Frankfurt declined 10.1 percent in 2009 from the previous year to just over 1.8 million metric tons.

Frankfurt's passenger numbers were down 4.7 percent last year at approximately 51 million, maintaining its ranking as Europe's third largest airport after London Heathrow and Paris Charles de Gaulle.

Fraport said it expects net income to decline in 2010 as higher depreciation and amortization charges outweigh gains in cargo and passenger traffic. Revenue will rise on higher traffic and airport charges.

The company said it expects earnings before interest, taxes, depreciation and amortization to reach "at least $822 million.”

Contact Bruce Barnard at brucebarnard47@hotmail.com.