FRANKFURT,
Germany,
March 3 /PRNewswire-FirstCall/ -- In fiscal year
2007, the Fraport Group achieved new air traffic records and further
increases in revenue and operating results. With EUR2.33 billion, revenue was
8.6 percent higher than in the previous year, while EBITDA (earnings before
interest, tax, depreciation and amortization) rose by 0.4 percent over 2006
to reach EUR580.5 million. Net profit of EUR213.7 million was 6.6 percent
lower due to special effects in 2006. Fraport's executive board is
recommending an unchanged dividend of EUR1.15 per share.
At the Group's Frankfurt Airport (FRA) home base, Fraport again achieved
a new record in passenger traffic for the 2007 fiscal year. Welcoming more
than 54 million passengers, FRA registered an increase of 2.6 percent.
Airfreight tonnage at FRA climbed by 1.9 percent to 2.1 million metric tons.
Combined, the Fraport Group's majority-owned airports recorded a total of
75.6 million passengers, representing 5.5 percent year-on-year growth.
This again demonstrates the curbing effect of capacity constraints at
Frankfurt Airport. Fraport executive board chairman Dr. Wilhelm Bender,
speaking at the company's annual financial conference today in Frankfurt,
said that he was, thus, all the more pleased about last December's zoning
approval for the expansion of Frankfurt Airport. "This marks a milestone for
timely implementation of our airport expansion plans." Bender emphasized that
expansion and the urgently needed capacity increases will secure FRA's future
competitiveness in the long term. Thus, the go-ahead for FRA's expansion
"will also benefit the entire Frankfurt/Rhine-Main region, the prosperity of
which has always been closely tied to an efficient transportation
infrastructure," he explained.
Bender again underscored that Fraport wants to wait for legal
clarification from the Hesse Administrative High Court's various fast-track
proceedings - although the zoning approval already provides the legal basis
for the immediate start of construction. "Because of our respect for the
court and our commitment to handle the expansion issue constructively and in
the spirit of partnership and good neighborliness, we will not proceed with
irreversible measures," Bender stated. "However, when the legal status has
been clarified, which will presumably be no later than the beginning of 2009,
we will waste no time in starting the extensive expansion program."
Until the opening of the new runway for the 2011 winter timetable, FRA
plans to compete successfully against its global hub competitors by
maximizing four strategies for an even more efficient use of existing
infrastructure. Firstly, the trend toward increasing capacity utilization of
passenger aircraft at FRA must continue. Secondly, the use of widebody
aircraft will continue to increase. Thirdly, intermodality - the integration
of air and rail transportation which Frankfurt Airport has promoted for many
years - will be further intensified. Last but not least, the company expects
the attractiveness of FRA's late evening and early morning takeoff and
landing slots to increase further, thus activating capacity reserves
available in the existing system. "We are proud of our market position that
is the envy of others," said Bender. Approximately 70 percent of all
intercontinental flights to and from Germany are operated via Frankfurt.
Growing continuously, the share of widebody aircraft at FRA is currently at
25 percent; in comparison, Munich Airport's share is less than six percent,
stressed Bender.
In addition to developing our Frankfurt home base into an airport city,
Fraport also successfully taps new market opportunities as part of its
external business, said Bender. Existing airport holdings and investments
achieved satisfying development in the past year. "We continue to be
constantly on the lookout for attractive new opportunities worldwide, where
we can profitably market our expertise in airport operations," explained the
executive board chairman.
"We maintain intensive contact with the market, particularly in the
booming countries of India and China". These markets are receptive to further
attractive participation from Fraport, in addition to the company's existing
airport investments in the Indian capital of Delhi and the mega-city of Xi'an
in central China. Promising negotiations on further investments in China are
in progress.
Fraport's executive board chairman is optimistic about the current 2008
fiscal year. In terms of operations, the first two months of the year have
been very positive. Passenger traffic at FRA surged by 3.7 percent compared
to the busy January of 2007. And the uptrend also continued in February, when
FRA welcomed well over four percent more passengers year-on-year. In
contrast, aircraft movements remained unchanged. From this, we can ascertain
just how much growth would be possible if FRA had sufficient capacities
available to meet the demand.
Growth plans for the Fraport Group's other airports are clearly more
ambitious, states Bender. Together, these airports are expected to share in
the excellent growth perspectives of world aviation, at least proportionately.
At Frankfurt, passenger traffic is anticipated to rise by one or two
percent in the current year.
Bender announced that Group revenue will decline in absolute terms in
2008, due to the recent sale of ICTS Europe. Excluding this one-time effect,
earnings will rise again because of increasing passenger figures. "Therefore,
we should be able to close the current business year with a further rise in
EBITDA," said Fraport's CEO.
"We are successful because we are market-oriented and competitive," said
Bender, in view of the current wage rate disputes in Germany. "These success
factors have been and must continue to be vital, particularly concerning
staff costs - our biggest cost element." Bender understands that employees
wish to share adequately in the success of their work. For many years,
therefore, Fraport has run a profit-sharing plan for its employees. "A new
collective agreement and possible industrial actions must not jeopardize what
we have achieved at our company to the benefit of all employees," he urged.
All figures stated for the 2007 fiscal year are preliminary until March
18, the day when Fraport AG's supervisory board will approve of the 2007
Statement of Accounts. Effective March 20, Fraport's Annual Report 2007 will
be available as a download via Fraport's Internet Web site. Fraport AG's
Annual General Meeting (AGM) will be held on May 28 at the Jahrhunderthalle
in Frankfurt-Hochst.
For More Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. - Manager International Press
Press Office (Dept. UKM-PS), Corporate Communications (UKM)
60547 Frankfurt am Main, Federal Republic of Germany
Tel.: +49-69-690-78547; Fax: +49-69-690-60548;
E-mail: r.payne@fraport.de; Internet: http://www.fraport.com
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