A total of €280 million earmarked for measures to reduce personnel costs – Adjusted operating result (EBITDA) remains positive, backed by cost-saving measures – Frankfurt Airport’s passenger decline expected to exceed 70 percent for full-year 2020
During the first nine months of 2020, Fraport AG’s financial performance was severely impacted by the Covid-19 global pandemic. The Group’s revenue declined by more than a half in the reporting period. Despite comprehensive cost-saving measures, the Fraport Group registered a net loss of €537.2 million – which includes expenses of €280 million earmarked for measures aimed at lowering personnel costs. Passenger traffic at Frankfurt Airport (FRA) declined by 70.2 percent year-on-year, with 16.2 million travelers served from January to September 2020.
Fraport AG’s executive board chairman, Dr. Stefan Schulte, said: “Our industry continues to navigate through a very difficult situation. With infection rates rising again across Europe in the past few weeks, governments have largely reintroduced or widened travel restrictions. Airlines are downsizing their flight schedules even more. Currently, we do not expect a recovery until at least the summer season of 2021. In response, we are continuing to realign our company to become significantly leaner and more agile – to achieve a sustainable reduction of our cost base. We are well on track to achieving this target. Measures implemented at our Frankfurt home base will help us reduce personnel and material costs in the medium term by up to €400 million per year. This corresponds to about 25 percent of our total operating expenses recorded at the Frankfurt location during the 2019 business year.”