Fraport posts record revenue and profit despite market challenges in 2024

Investing.com -- Fraport (ETR:FRAG) Group reported a solid results in the 2024 fiscal year, posting record-breaking revenues and profitability despite facing economic and regulatory headwinds. 

The airport operator benefited from increased passenger traffic and pricing adjustments, both at its Frankfurt hub and across its global network.

Revenue increased by 10.7% year-on-year, reaching €4.43 billion, surpassing the €4 billion recorded in 2023. 

Adjusted for revenue from construction and expansion under IFRIC 12, the increase was even higher at 11.7%, amounting to €3.89 billion. 

EBITDA grew by 8.1%, setting a new record at €1.30 billion, up from €1.20 billion in the previous year. The group’s net profit saw a significant rise of 16.6%, reaching €501.9 million compared to €430.5 million in 2023.

Despite the strong earnings growth, free cash flow declined slightly by 2.8%, falling to negative €674.7 million due to ongoing major investment projects, including expansions at Lima and Frankfurt airports. 

Net financial debt increased by 8.8% to €8.39 billion, maintaining the net debt-to-EBITDA ratio at 6.4, unchanged from 2023. 

Liquidity declined marginally by 2.6% to €3.94 billion, reflecting the company’s continued high level of investment activity.

Fraport experienced passenger growth across most of its airports. Frankfurt Airport saw an overall increase of 3.7%, welcoming 61.6 million passengers. 

While leisure travel remained dominant, business travel demand also rose but at a slower pace. Domestic air travel within Germany grew by 2%, while European traffic increased by 4.2%, particularly benefiting from demand for warm-weather destinations. 

Intercontinental traffic rose by 3.4%, driven primarily by a 13.3% surge in travel to Asia, with China and India being major contributors to this expansion.

Cargo traffic at Frankfurt Airport increased by 6.2%, reaching 2.1 million metric tons. The rise in air freight volumes was fueled by growing e-commerce demand and disruptions in maritime trade due to geopolitical tensions.

Among Fraport’s international locations, Lima Airport saw the strongest growth at 15.2%, followed by Ljubljana at 13.3%, Antalya at 6.5%, and Fraport’s 14 Greek airports at 6.4%. 

Passenger numbers across the group’s international airports surpassed pre-pandemic levels by 1.3%.

Fraport continued to make progress on major infrastructure projects. In Lima, a new terminal is nearing completion, which will significantly expand capacity to 40 million passengers in the coming months. 

At Antalya Airport, an expansion project is set to finish before the summer season, increasing capacity to 65 million passengers. In Frankfurt, Terminal 3 remains on schedule for commissioning after Easter 2026.

Fraport expects passenger numbers at Frankfurt Airport to grow to approximately 64 million in 2025. 

While EBITDA is projected to see moderate growth, net profit may remain stable or decline slightly due to the absence of a one-time financial gain from the 2024 sale of a minority stake in Pulkovo Airport. 

Given the company’s high debt levels, the management has again proposed not to distribute a dividend, opting instead to reinvest profits to strengthen the equity base.