Fraport Posts Net Loss In Q3, Group EBITDA Positive; Backs Loss Forecast For FY20

German airport operator Fraport (FRA.DE,0O1R.L,FPRUF.PK) reported Wednesday that its third-quarter net loss Group result was 305.8 million euros amid Covid-19 pandemic.

The company recorded a positive Group EBITDA of 29.2 million euros before special items in the third quarter reflecting cost-reduction measures. In the preceding second quarter, Group EBITDA was negative 107 million euros.

The interim recovery of passenger volumes also contributed to the development.

In the nine-month period, Fraport registered a net loss of 537.2 million euros, compared to last year’s profit of 413.5 million euros. Group EBITDA was minus 227.7 million euros, compared to positive 948.2 million euros.

Group revenue decreased 53.8 percent year-over- year to 1.32 billion euros. Adjusting revenue was down 53.9 percent to 1.15 billion euros.

Passenger traffic at Frankfurt Airport or FRA declined 70.2 percent year-on-year to 16.2 million travelers.

Looking ahead, the company said it does not expect a recovery until at least the summer season of 2021.

Measures implemented at Frankfurt home base are expected to reduce personnel and material costs in the medium term by up to 400 million euros per year.

The company continues to expect fiscal 2020 Group result and Group EBIT to be significantly negative and Group EBITDA to be clearly negative.

Group revenue, adjusted for IFRIC 12, is expected to drop by up to 60 percent and Group EBITDA before special items is forecast to decline sharply, but still remain slightly positive, backed by the already implemented or planned cost-saving measures.

For the current business year, the Fraport executive board expects passenger traffic at Frankfurt Airport to fall markedly by more than 70 percent year-on-year to approximately 18 to 19 million passengers.

CEO Schulte said, “We currently expect Frankfurt Airport’s passenger traffic in 2021 to reach only 35 to 45 percent of the 2019 level, in particular due to the anticipated very weak first quarter 2021. Even in 2023/24, passenger figures will probably still only reach 80 to 90 percent of pre-crisis levels. This means we have a very long journey ahead of us.”

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