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Ethiopian Airlines CEO believes in The New Spirit of Africa and pledges to work with Boeing

March 25, 2019 by Forimmediaterelease

Tewolde GebreMariam, Group CEO, Ethiopian Airlines issued a statement today.

He wrote: “It has been more than two weeks since the tragic crash of Ethiopian Airlines flight 302. The heartbreak for the families of the passengers and crew who perished will be lasting. This has forever changed their lives, and we at Ethiopian Airlines will feel the pain forever. I pray that we all continue to find strength in the weeks and months ahead.

The people of Ethiopia feel this very deeply, too. As a state-owned airline and the flagship carrier for our nation, we carry the torch for the Ethiopian brand around the world. In a nation that sometimes is saddled with negative stereotypes, accidents like this affect our sense of pride.

Yet this tragedy won’t define us. We pledge to work with Boeing and our colleagues in all the airlines to make air travel even safer.

As the largest aviation group on the continent of Africa, we represent The New Spirit of Africa and will continue to move forward. We are rated as a 4-star global airline with a high safety record and member of Star Alliance. That will not change.

Full Cooperation

The investigation of the accident is well underway, and we will learn the truth. At this time, I do not want to speculate as to the cause. Many questions on the B-737 MAX airplane remain without answers, and I pledge full and transparent cooperation to discover what went wrong.

As it is well known in our global aviation industry, the differences training between the B-737 NG and the B-737 MAX recommended by Boeing and approved by the U.S. Federal Aviation Administration called for computer-based training, but we went beyond that. After the Lion Air accident in October, our pilots who fly the Boeing 737 Max 8 were fully trained on the service bulletin issued by Boeing and the Emergency Airworthiness Directive issued by the USA FAA. Among the seven Full Flight Simulators that we own and operate, two of them are for B-737 NG and the B-737 MAX. We are the only airline in Africa among the very few in the world with the B-737 MAX full flight Simulator. Contrary to some media reports, our pilots who fly the new model were trained on all appropriate simulators.

The crews were well trained on this aircraft.

Immediately after the crash and owing to the similarity with the Lion Air Accident, we grounded our fleet of Max 8s. Within days, the plane had been grounded around the world. I fully support this. Until we have answers, putting one more life at risk is too much.

Belief in Boeing, U.S. Aviation

Let me be clear: Ethiopian Airlines believes in Boeing. They have been a partner of ours for many years. More than two-thirds of our fleet is Boeing. We were the first African airline to fly the 767, 757, 777-200LR, and we were the second nation in the world (after Japan) to take delivery of the 787 Dreamliner. Less than a month ago, we took delivery of yet another new two 737 cargo planes (a different version from the one that crashed). The plane that crashed was less than five months old.

Despite the tragedy, Boeing and Ethiopian Airlines will continue to be linked well into the future.

We also are proud of our association with U.S. aviation. The general public does not know that Ethiopian Airlines was founded in 1945 with help from Trans World Airlines (TWA). In the early years, our pilots, flight crews, mechanics and managers were actually employees of TWA.

In the 1960s, after the handoff, TWA continued in an advisory capacity, and we’ve continued to use American jets, American jet engines and American technology. Our mechanics are Federal Aviation Administration (FAA) certified.

Our first direct passenger service to the U.S. began in June 1998, and today we fly direct to Africa from Washington, Newark, Chicago and Los Angeles. This summer, we will begin flying from Houston. Our cargo flights connect in Miami, Los Angeles and New York.

U.S. travel to Africa has increased more than 10 percent in the last year, second only to travel to Europe in term of the percentage increase — traveling to Africa has increased more than traveling to Asia, the Middle East, Oceania, South America, Central America or the Caribbean. The future is bright, and Ethiopian Airlines will be here to meet the demand.

In less than a decade, Ethiopian Airlines has tripled the size of its fleet – we now have 113 Boeing, Airbus and Bombardier aircraft flying to 119 international destinations in five continents. We have one of the youngest fleet in the industry; our average fleet age is five years while industry average is 12 years. Moreover, we have tripled the passenger volume, now flying more than 11 million passengers annually.

Each year, our Aviation Academy trains more than 2,000 pilots, flight attendants, maintenance workers and other employees for Ethiopian Airlines and several other African airlines. We are the company others turn to for aviation expertise. In the last 5 years, we have invested more than half a Billion dollars in training and other infrastructure in our Addis Ababa base.

We will work with investigators in Ethiopia, in the U.S. and elsewhere to figure out what went wrong with flight 302.

We resolve to work with Boeing and others to use this tragedy to make the skies safer for the world.”

Travel News | eTurboNews

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Bartlett welcomes Tourism Graduate School for 2020

March 22, 2019 by Forimmediaterelease

Jamaica Tourism Minister, Hon Edmund Bartlett has welcomed the establishment of a Graduate School of Tourism by 2020, which will be based at the University of the West Indies’ Western Campus.

“This project has been a vision of mine for many years and to see this vision now become a reality under the leadership of Professor Dale Webber, Principal of the University of the West Indies augurs well for tourism and our human capital development strategy.

The graduate school of tourism will be an ideal complement for the training and certification that is already being done through our Jamaica Centre for Tourism Innovation which is the institute we established for professionalizing the industry so workers can have their competencies recognized through certification” said Minister Bartlett.

The Jamaica Centre for Tourism Innovation’s (JCTI’s) focus is on certifying workers in the sector to the highest level, which means that they will be able to go anywhere in the world and match their qualifications with the best there is.

To date, JCTI has certified in excess of 600 persons. They include Certified Hospitality Educators to deliver the AHLEI programs; Certified Hospitality Supervisors; tutors for the ACF certification programs; over 22 chefs, including Executive Chefs, Sous Chefs, Culinarians and Pastry Culinarians.

The announcement was made at the University of the West Indies’ Western Campus official ground breaking. The University of the West Indies (UWI) offers world class, accredited higher education programs to Jamaica, the region and the globe.

The new site, which will be located at Barnett Oval in Montego Bay, aligns with the University’s commitment to increase participation in tertiary and higher education whilst strengthening their partnership opportunities with stakeholders in Western Jamaica.

Principal of the UWI, Professor Dale Webber, in welcoming the new graduate school of tourism said, “What separates the U.W.I from other Universities is our graduate studies and research so we see the Global Resilience and Crisis Management Centre, which is currently housed at our Mona campus, as part of the School of Tourism portfolio.
Now we have a new vehicle at this Western Jamaica campus Barnett site to establish the school and offer tourism at a higher level with Masters and Phd programs.

“This is a monumental step towards a total reimaging of tourism, where we will be able to have workers trained and certified at the highest levels. With this higher level of training and certification, they will be able to not only meet the demands of an ever-changing global industry but will be able to demand more in terms of jobs and compensation,” added Minister Bartlett.

Travel News | eTurboNews

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Reimagining tourism for the future

March 22, 2019 by Forimmediaterelease

In the last decade or so, tourism has positioned itself as a critical variable in the development planning space and the development discourse globally. Today businesses, governments, international organizations as well as NGOs have established, or are establishing programs, initiatives and programs to facilitate tourism for development. Academic institutions have also been introducing, organizing or reorganizing ‘tourism’ as an important element of their curriculum. The University of the West Indies is no exception. Through its many courses, centers and institutes, the UWI has been preparing our Caribbean nationals for the expanding opportunities and benefits being presented by the growth of the tourism sector. But we have much more to do.

Tourism and Development

According to the UNTWO, WTTC, CTO, PATA and several other regional and global institutions, tourism has been recognized as that force, which accelerates human development, social and economic inclusiveness, increased entrepreneurship and self-employment, the generation of decent work, environmental sustainability and also support regional integration.

Indeed, the contribution of tourism to both national and regional development continues to be enormous and I dare say unmatched. Firstly, tourism is linked to the notion of a sustainable economy in several ways. The economic indicators show that Caribbean is the most-tourism dependent in the world, tourism is the main economic sector in 16 out of 28 Caribbean states and the total contribution of tourism to employment in the Caribbean is estimated at 2.4 million jobs according to the World Travel and Tourism Annual Report for 2018. In Jamaica tourism employs one in every four persons.

Beyond direct employment tourism and hospitality there are vast indirect opportunities for supplying inputs to tourism enterprises catering to the visitor experience in areas such as accommodations, food and beverage, cultural and creative arts, entertainment and recreation, agriculture, manufacturing, banking and finance and foreign exchange.

Tourism is also linked to the preservation of heritage and culture through the concept of experiential tourism. Most tourists travel to have authentic experiences that require that they partake in activities and consume and acquire products/goods that are indigenous to the countries they travel. Tourism thus helps to preserve natural and cultural resources while generating revenues and incomes for local populations.

To unlock the potential of tourism to contribute to inclusive growth and development our main focus at the Ministry of Tourism is to find innovate ways to reduce economic leakage in the tourism sector and to improve retention. This mandate is already being executed through our Linkages Network which has been coordinating policies and strategies designed to strengthen linkages with other sectors of the economy particularly the agricultural and manufacturing sector, strengthen the benefits derived from the industry by local residents and communities and promote broader participation by nationals.

We however recognize that the competitiveness 0f the Caribbean destinations will significantly rely on how well we prepare our people for the emerging opportunities. If Caribbean destinations are to remain globally-competitive and increase their share of the global tourist market, we must find ways to unlock new sources of competitiveness and comparative advantage.

Traditionally the tourism sector has enjoyed one of the highest rates of labor mobility of any segment of the economy. However, many of the opportunities taken up by our citizens are those that require low skill and offer limited prospect for economic mobility. This fact is largely attributable to the fact that the majority of the tourism-related jobs are deemed to require low to medium-level technical skills. The global tourism market is however becoming increasingly differentiated and segmented. Consequently, the continued growth of Travel & Tourism in the region will depend on the right people with the right skills being available to meet this demand for additional human capital. And we at the MOT have been working to create a paradigm shift in the local tourism space which will see our citizens accessing more substantive jobs and I will discuss this some more in a minute.

Many trends are impacting the skills needed to perform competently in tourism-related jobs such as digitalization and virtualization, the need for sustainable behaviors & practices, the growth of non-traditional segments, the changing demographics of international travelers (more youthful, more specific), changing lifestyles and consumer demands and the need for data-driven policies. Technology has had a significant impact on tourism-related employment as well as supporting and changing how services are delivered. While technology has downgraded certain skills in the tourism sector it has upgraded other skills, particularly in the areas of marketing, information and communication. Caribbean destinations must recognize the differing preferences of a new generation of younger travelers and the growing importance of online services and marketing, especially through mobile internet. The future of tourism lies in the manipulation and exploitation of ICT capabilities such as big data, big data analytics, machine learning, blockchain technologies, the Internet of Things, robotics etc. We thus need to urgently capitalize on the opportunities for high-skilled employment that are being generated in the ICT-related fields in tourism.

The growth of non-traditional markets in Europe, Asia and Central America will require increased focus on cultural studies and the development of competencies in various foreign languages. The increased focus on data-driven policies to better understand the emerging needs of markets, to analyze trends and to predict future patterns means that tourism development strategy must increasingly emphasize research-based skills. The evolving tourism market will require modern managerial skills that can drive performance improvements in the sector by raising productivity through better staff planning and scheduling, employing new technology and improving employee motivation, thereby reducing staff turnover. Most importantly , we must equip our citizens with the competitive business management and marketing skills that are required to operate successful tourism enterprises in this globalized era.

In the current dispensation, the hospitality sector has to contend with negative perceptions of low wages and the lack of career opportunities beyond entry-level jobs. Studies have found that many university students have a peripheral view of tourism. There is oftentimes scarce information and misconceptions about the skills required as well as the opportunities for career development. National governments must take a lead in developing a long-term workforce development strategy. Ideally, such a strategy would be developed within the broader context of improving the industry’s competitiveness and sustainability, since the increasing demand for skilled labor will continue to present a major challenge in all countries. It is highly recommended that strategies and their implementation should be carried out with the private and education sectors and embrace agreed-upon commitments from the industry.

A robust institutional framework is needed to determine the education and training policies and programs that will support a more attractive labor market and business environment in tourism which will allow the industry to maintain a sufficient and highly-qualified workforce and hence support the enhancement of productivity in the industry. My view is that while formal qualifications are not always required in tourism, their existence, and a widely available opportunity to obtain qualifications and competency development in tourism may contribute to raising the prestige of the occupation and the sector in general.

A study by the WTTC revealed that Travel & Tourism’s human capital challenges are significantly higher than those faced in other sectors with most countries in study projecting to face a talent ‘deficit’ or ‘shortage’ in Travel & Tourism over the next ten years. Talent development will also prevent many high-skilled positions from being filled by migrant workers. Both public and private sector are thus encouraged to act now to address the anticipated talent shortage.

Given the robust nature of UWI’s tourism portfolio which was recently expanded with the recent launch of the region’s first Global Tourism Resilience and Crisis Management Centre, here at UWI, changes in the tourism space, new instruction technologies, the ever diversifying nature of tourism, it is time for the UWI to reimagine its tourism portfolio and consolidate its programs, courses, institutes, centers, etc. under one roof here in one of the Caribbean’s mecca of tourism (Montego Bay) with the establishment of a school or a faculty of Tourism.

Indeed, UWIs global recognition as a powerful intellectual institution will position the UWI to make an even more substantive contribution to the development of the region through such a Faculty or School. Certainly, this effort would have my support, and, although I cannot speak for my Caribbean counterparts, I am more than certain it would also have the support of the government of the region. More specifically, in keeping with the mandate of the administration that I am apart of, I reiterate my commitment to promoting a sustainable tourism product that advances the well-being of local communities and that incorporates more local talent in the delivery of tourism services.

Travel News | eTurboNews

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OLS Hotels & Resorts names John Dailey Hawaii Director of Sales

March 21, 2019 by Forimmediaterelease

OLS Hotels & Resorts, a hotel management company of 23 hotels and resorts throughout the U.S., announced the newest addition to its Hawaii team, Director of Sales John Dailey.

In his new role, Dailey will be responsible for developing and implementing OLS Hotels & Resorts’ Hawaii sales strategy. Additionally, his diverse cultural background and bilingual speaking skills in English and Japanese will allow OLS to increase its footprint in the Asia market.

“We are very pleased to welcome John as part of our expanding Hawaii based team,” said Ben Rafter, chief executive officer of OLS Hotels & Resorts. “John’s sales experience and knowledge of the Hawaii hospitality market will be a valuable asset as we continue to grow OLS into Hawaii’s premier and only true local hotel management company.”

Dailey brings more than 20 years of local Hawaii hospitality experience to OLS Hotels & Resorts. Previously, he served as senior director of sales at Aqua-Aston Hospitality where he implemented successful sales plans for a portfolio of more than 40 properties. Dailey also held sales director positions with Pacific Beach Hotel, Outrigger Hotels and Resorts and Hilo Hattie.

OLS Hotels & Resorts currently operates five Hawaii properties: Hotel Renew and Royal Grove in Waikiki; Plantation Hale Suites in Kapaa and Banyan Harbor Resort in Lihue on Kauai; and Ainamalu at Waikoloa Beach Resort on Hawaii Island. In June 2019, OLS will debut the redesign of Hotel Renew, which will be rebranded simply as “Renew” with a focus on holistic Hawaiian wellness. The management company has plans to add several more Hawaiian properties to its portfolio over the next few years with a focus on filling the consumer demand for unique, independent properties that are reflective of each individual hotel’s location and culture.

Travel News | eTurboNews

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St. Kitts & Nevis records double-digit growth for first two months of 2019

March 21, 2019 by Forimmediaterelease

Demand for St. Kitts & Nevis as a premier destination for travelers continues to rise, with air arrivals for the first two months of this year posting a year-to-date increase of 15.3% system-wide as compared to the same period in 2018. Results are even better from North America, the destination’s largest source market, registering a year-to-date increase in air arrivals of 19.3% for January and February 2019 as compared to the same months in 2018. This continues the growth of airlift from major gateways in 2018, which increased over 2017 by 9.3% system-wide and reached a total of 153,364 air passenger arrivals for the full year, the highest number ever recorded in the destination’s history.

“I am extremely pleased to see such strong increases in air passenger arrivals to our Federation for 2018 continuing into peak season 2019,” said the Hon. Lindsay F.P. Grant, Minister of Tourism for St. Kitts & Nevis. “These numbers are a clear indication that we are gaining momentum towards reaching our goal of 150,000 stayover visitors in the next few years.”

“We redoubled our marketing efforts in the fourth quarter of last year specifically to support our additional peak season air service and these numbers demonstrate that we have achieved very successful results,” added Racquel Brown, CEO of the St. Kitts Tourism Authority. “With the milestone airlift arrivals recorded for 2018 and performance last year in the months of March and June nearing 30% growth over the same months in 2017, the significant growth measured so far in 2019 signals a rising demand for St. Kitts as a highly desirable travel destination, particularly from North America and for key events such as St. Kitts Music Festival. We will continue to employ this successful marketing formula as we strive to reach our goal of 150,000 stayover guests by 2021 from our primary source markets of the US, Canada, UK and the Caribbean.”

St. Kitts’ marketing strategy maintains a particular focus on reaching individuals who are a match with the geo-demographic lifestyle data of its target visitors in key gateway markets to support airlift year-round as well as marquee island events including St. Kitts Music Festival. In the fourth quarter of 2018, additional digital, print and spot TV advertising combined with public relations to communicate special offers and raise brand awareness in and around select North American cities comprised a coordinated campaign to grow arrivals for peak season 2018-2019. The Ministry of Tourism and the St. Kitts Tourism Authority also work closely with airlines to systematically build out air bridges to/from identified target gateways to grow service in a sustainable manner while making the island increasingly easy to reach via air.

St. Kitts & Nevis welcomed non-stop Saturday flights from Minneapolis that started December 22, 2018 and operate through April 20, 2019. In addition, from Newark Liberty International Airport in New Jersey, the destination receives Wednesday non-stop flights that started January 9, 2019 and operate through March 6, 2019 to complement existing non-stop Saturday flights. Looking ahead to the summer, new non-stop Saturday flights from Dallas starting May 25, 2019 and operating through August 17, 2019 open up a new gateway with easy connections from Houston and the western states of the US.

About St. Kitts:

Intoxicating natural beauty, sunny skies, warm waters, and sandy beaches combine to make St. Kitts one of the most seductive spots in the Caribbean. Located in the northern Leeward Islands, it offers a diverse tourism product developed from the destination’s natural beauty, cultural heritage and rich history. The island’s stunning variety of tourism attractions include hiking through the tropical rainforest, riding the scenic railway that connects the island’s former sugar plantations, visiting the Caribelle Batik factory, and touring Brimstone Hill Fortress National Park, which is an UNESCO World Heritage Site. Among the more traditional vacation pastimes available are water sports including catamaran cruises, golf, shopping, tennis, dining, gaming at St. Kitts’ exclusive casino or simply relaxing on the beach.

Travel News | eTurboNews

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All Nippon Airways takes delivery of its first Airbus A380 Superjumbo

March 20, 2019 by Forimmediaterelease

Japan’s All Nippon Airways (ANA) has taken delivery of its first A380 at a special ceremony in Toulouse, becoming the 15th operator of the world’s largest passenger aircraft. The delivery ceremony was attended by ANA HOLDINGS President and CEO Shinya Katanozaka and hosted by Airbus CEO Tom Enders.

ANA has ordered three A380s and will operate the aircraft on the popular route between Tokyo Narita and Honolulu from May 24. Each ANA A380 will feature a special livery depicting the Hawaiian Green Sea Turtle, also known as the Honu. The livery on the first aircraft is painted in blue, while the second will be green and the third orange.

ANA’s A380 is configured in a premium layout seating 520 passengers. The upper deck features eight suites in First Class, 56 Business Class seats that convert to fully flat beds and 73 Premium Economy seats. Economy Class is located on the main deck, where ANA offers a spacious layout seating 383 passengers, including 60 Couch Seats. The aircraft features ANA’s very latest in-flight entertainment systems, as well as full connectivity in all classes.

“We will commit all three of our Airbus A380 to the Tokyo Honolulu route with the goal of introducing a new level of luxury service to our passengers flying ANA on the number one resort route for Japanese travelers,” said Shinya Katanozaka, President and CEO of ANA HOLDINGS INC.

“We believe the A380 will become a game changer for ANA and will enable us to increase our market share by doubling the number of seats connecting Honolulu and Tokyo by 2020,” he added. “The FLYING HONU is designed to offer unprecedented comfort and convenience and a world of new possibilities to ANA passengers, something that would not have been possible without the combined efforts of the Airbus and Rolls-Royce teams working closely with the dedicated professionals at ANA.”

“Airbus is proud to deliver this beautiful aircraft to ANA,” said Airbus CEO Tom Enders. “Offering unrivalled levels of passenger comfort, the A380 will enable ANA to increase its capacity on the busy route to Hawaii with maximum efficiency. We are confident that the aircraft will be highly successful in service with ANA and are committed to providing full support to the airline all along the way.”

The A380 offers airlines the most efficient option to meet demand on the world’s most heavily travelled routes. It is also firmly established as the aircraft of choice by passengers worldwide, offering more personal space in all classes, a super-quiet cabin and smooth ride. Around 250 million passengers have already flown on the aircraft.

Following today’s delivery to ANA, there are currently 232 A380s in service with 15 airlines worldwide, flying on 120 routes across the globe.

Travel News | eTurboNews

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Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

March 19, 2019 by Forimmediaterelease

Fraport

Boards propose dividend increase to EUR2 – Outlook remains positive
In the 2018 fiscal year (ending December 31), Fraport AG continued on
its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport’s international portfolio – with the airports in Brazil
and Greece, in particular, making a significant contribution.
Fraport AG’s executive board chairman Dr. Stefan Schulte said: “We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects.”
Revenue and earnings targets achieved
The operating result (Group EBITDA) climbed markedly by 12.5 percent
to over EUR1.1 billion. The Group result (net profit) rose even
stronger, by 40 percent to EUR505.7 million. This includes earnings
gained from the sale of Fraport’s stake in Hanover Airport, which
contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport’s international
business, while remaining in positive territory at EUR6.8 million.
Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).
Passenger traffic rises noticeably at FRA and internationally
Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.
CEO Schulte commented: “We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport – while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us.”
In response to strong passenger growth, Fraport hired over 3,000 new
staff members at Frankfurt Airport in 2018. Despite the constraints
experienced at some central process points in the terminals during
peak periods – particularly at the security checkpoints – global
satisfaction of passengers with Frankfurt Airport was at 86 percent
in 2018 – thus even posting a slight increase compared to the
previous year (2017: 85 percent). To provide additional space for
security checkpoints, Fraport is investing in an extension to
Terminal 1 for installing seven extra security lanes in the summer of
2019.
Fraport’s international portfolio also posted a significant gain in
passenger traffic during 2018. In Brazil, the two airports of Porto
Alegre and Fortaleza reported a 7.0 percent increase to 14.9 million
passengers in 2018 – Fraport Brasil’s first year of operating these
airports. At the 14 Greek airports, traffic rose by almost 9 percent
to 29.9 million passengers. Antalya Airport in Turkey grew by a
significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.
Outlook: Growth expected to continue
Fraport is forecasting sustained growth at all of the Group airports
in fiscal year 2019. At Frankfurt Airport, passenger volume is
expected to rise between around two and roughly three percent.
Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport’s stake in Hanover Airport. The application
of the IFRS 16 accounting standard – which changes the accounting
rules for leases – will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.
Fraport’s four business segments at a glance
Revenue in the Aviation segment increased by 5.5 percent to slightly
over EUR1 billion. This was due partly to higher revenue from airport
charges resulting from increased passenger traffic at Frankfurt
Airport. At EUR277.8 million, segment EBITDA increased by 11.3
percent year-on-year, while segment EBIT rose 6.5 percent to EUR138.2
million.
Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.
Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.
At nearly EUR1.3 billion, the International Activities and Services
segment significantly advanced by 58 percent compared to the previous
year. After adjusting for the EUR359.5 million in revenue related to
IFRIC 12, the segment’s revenue rose by 20.1 percent to EUR931.4
million. This revenue growth received major contributions from the
Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9 million),
as well as Fraport Greece (+ EUR53.2 million). Segment EBITDA
increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.
You can find our 2018 Annual Report and the presentation from the
press conference on our financial statements (as of 10:30 a.m.) on
the Fraport AG website.

MEDIA CONTACT: Fraport AG, Torben Beckmann, Corporate Communications, Media Relations, 60547 Frankfurt, Germany, E-mail: t.beckmann@fraport.de

Travel News | eTurboNews

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