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What airport is now busier than mega-hubs Frankfurt and Dallas Fort Worth?

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This airport has now become the world’s 12th busiest airport, moving up four places from the 16th spot in 2017. According to the preliminary world airport traffic rankings for 2018 released by the Airports Council International (ACI), it over took mega-hubs like Frankfurt, Dallas Forth Worth, Guangzhou and Istanbul Ataturk airports.

The four airports above the IGI Airport are Amsterdam Schiphol, Paris-Charles de Gaulle, Shanghai Pudong and Hong Kong, managing over 46 lakh passengers more than IGIA. The airport ranked busier than all these might surprise – it’s New Delhi’s Indira Gandhi International Airport (IGIA).

“India became the world’s third-largest aviation market in terms of passenger throughput, behind the US and China, in 2018. India’s move towards a more liberalized aviation market and the nation’s strengthening economic fundamentals have helped it become one of the fastest-growing markets with its traffic growing rapidly in a relatively short time,” read the statement by ACI.

The ACI’s World Airport Traffic Forecasts also predicts the country will represent the third largest aviation market in terms of passenger throughput after the US and China by 2020.

As per the rankings released by the ACI, the GMR-group-run airport has solidified its status as one of the fastest growing airports in the world for passenger traffic. Only Seoul’s Incheon International with 10 percent point growth was close to Delhi in terms of passenger growth. The Incheon International airport has secured the 16th place in 2018.

The ACI report said the IGI airport saw 69 million domestic and international flyers in 2018, which is 10.2 percent points higher than the combined passengers of 2017. Passenger traffic in advanced economies grew 5.2 percent while in emerging economies it rose 10.3 percent in 2017.

ACI World Director General-Angela Gittens said while strong competitive forces continue to drive innovation and improvements in efficiency and service for passengers, airports face the challenges of meeting the continuing global growth in demand for air services.

The ACI, founded in 1991, is the trade association of the world’s airports, currently serving 641 members operating from 1,953 airports across 176 countries.

“It is expected that rising incomes in emerging markets will help propel global traffic to new heights in the coming decades as new aviation hubs begin to overtake the more mature markets of Western Europe and North America,” ACI said.

Travel News | eTurboNews

Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

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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

Fraport Traffic Figures February 2019:  Positive Trend Continues

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Passenger traffic rises at FRA and Group airports worldwide

In February 2019, Frankfurt Airport (FRA) welcomed more than 4.5

million passengers – an increase of 4.3 percent year-on-year.  During

the first two months of the year, FRA achieved passenger growth of

3.3 percent.

Aircraft movements climbed by 4.7 percent to 36,849 takeoffs and

landings in in the reporting month. Accumulated maximum takeoff

weights (MTOWs) rose by 4.6 percent to almost 2.3 million metric

tons.  Reflecting the ongoing slowdown in global trade, cargo

throughput (airfreight + airmail) contracted by 3.4 percent to

161,366 metric tons.

Group airports in Fraport’s international portfolio continued their

positive performance in February 2019. Ljubljana Airport (LJU) in

Slovenia served 105,470 passengers, a gain of 6.3 percent.  In

Brazil, combined traffic at Fortaleza (FOR) and Porto Alegre (POA)

airports increased by 15.8 percent to 1.2 million passengers.

Fraport’s Greek regional airports recorded overall growth of 13.6

percent to 588,433 passengers. The busiest airports included

Thessaloniki (SKG) with 368,119 passengers (up 24.2 percent), Chania

(CHQ) on the island of Crete with 47,661 passengers (up 19.6

percent), and Rhodes (RHO) with 46,331 passengers (down 13.0

percent).

In Peru, Lima Airport (LIM) saw traffic grow by 4.6 percent to some

1.8 million passengers. The two Bulgarian airports of Varna (VAR) and

Burgas (BOJ), combined, recorded a slight gain of 0.9 percent to

61,580 passengers. Antalya Airport (AYT) in Turkey served 766,068

passengers, up 10.4 percent. Pulkovo Airport (LED) in St. Petersburg,

Russia, grew by 13.5 percent to about 1.1 million passengers. Traffic

at Xi’an Airport (XIY) in China advanced by 6.8 percent to 3.7

million passengers.

New passenger record achieved at FRA

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FRAPORTFRAPORT

Frankfurt Airport (FRA) served more than 69.5 million passengers in 2018, thus posting a new record high in the airport’s history.

Compared to 2017, traffic at Germany’s largest airport grew by some 5 million passengers or 7.8 percent. This strong growth resulted from the launch of more routes to new destinations from FRA and from airlines increasing flight frequencies.

Commenting on the 2018 traffic figures, Fraport AG’s executive board chairman Stefan Schulte said: “The previous year has proved once again that there continues to be great demand for flying. In Frankfurt, we have achieved the highest absolute passenger growth in our history. This underscores Frankfurt Airport’s position as one of Europe’s leading aviation hubs. At the same time, the extraordinary growth in air traffic overall has caused major challenges for us and the entire aviation sector. Together with our partners, we are taking efforts to restore and enhance punctuality and reliability in air

traffic.”

In full-year 2018, aircraft movements at FRA rose by 7.7 percent to 512,115 takeoffs and landings in 2018. Accumulated maximum takeoff weights (MTOWs) also increased by 5.1 percent to some 31.6 million metric tons. Cargo throughput (airfreight + airmail) posted a slight 0.7 percent decline to about 2.2 million metric tons, reflecting growing uncertainties in global trade, particularly during the second half of the year.

In December 2018, more than 4.9 million passengers traveled via Frankfurt Airport – an increase of 7.8 percent compared to December 2017. Aircraft movements climbed by 9.0 percent to 38,324 takeoffs and landings, while accumulated MTOWs grew by 6.5 percent to about 2.4 million metric tons. Cargo throughput (airmail + airfreight) expanded by 1.9 percent to 183,674 metric tons in the reporting month.

Airports in Fraport’s international portfolio also reported noticeable growth in 2018. CEO Schulte commented: “In addition to Frankfurt, most of our Group airports worldwide also achieved new passenger records last year. We continue to invest in the airports of our international portfolio, thus ensuring their long-term development. To create additional capacity, we are currently carrying out major expansion projects at our Group airports, particularly in Greece, Brazil and Peru.”

In Slovenia, Ljubljana Airport (LJU) posted a 7.7 percent traffic increase to over 1.8 million passengers in 2018. Combined traffic at the two Brazilian airports of Fortaleza (FOR) and Porto Alegre (POA) rose by 7.0 percent to some 14.9 million passengers. Traffic at the 14 Greek regional airports advanced by 8.9 percent to a total of almost 29.9 million passengers. The three busiest gateways in Fraport’s Greek portfolio were Thessaloniki Airport (SKG) with some 6.7 million passengers (up 7.1 percent), Rhodes Airport (RHO) witharound 5.6 million passengers (up 5.0 percent), and Corfu Airport (CFU) where traffic soared by 15.3 percent to nearly 3.4 million passengers.

Lima Airport (LIM) in the capital of Peru welcomed more than 22.1 million passengers in 2018, representing an increase of 7.3 percent.

On the Bulgarian Black Sea coast, the Twin Star airports of Varna (VAR) and Burgas (BOJ) closed the year with combined traffic growth of 12.2 percent to about 5.6 million passengers. Antalya Airport (AYT) in Turkey saw traffic advance by 22.5 percent to almost 32.3 million passengers. Pulkovo Airport (LED) in St. Petersburg, Russia served more than 18.1 million passengers – an increase of 12.4 percent. Some 44.7 million passengers used Xi’an Airport (XIY) inChina, up 6.7 percent.