Air travel activity. - Fraport proceeding as planned with airport development efforts
At its annual general meeting, Fraport, the operator of Frankfurt Airport, shared updates on its international expansion plans. According to CEO Stefan Schulte, the third passenger terminal in Frankfurt is set to debut after the Easter holidays in 2026, adding around 19 million more passengers to the facility via a 4 billion euro investment. Once this is complete, Terminal 2 will close for renovations. This year also sees the construction of a solar park along Frankfurt's west runway with 37,000 solar panels installed.
Meanwhile, Fraport is moving ahead with its global projects. The new terminal in Lima is still scheduled to open this year, doubling capacity in the Peruvian capital to over 40 million passengers. At the joint venture airport in Antalya, Fraport and partner TAV plan to finish construction works before the 2025 peak travel season, aiming to handle up to 65 million passengers annually.
Despite the challenges faced by the Brazilian city of Porto Alegre due to historical flooding, Fraport's airport there remains closed for now. Thankfully, there were no fatalities among employees, although many lost their homes. Fraport has provided aid and financial assistance. The flood damage has yet to be assessed, and the company is insured and in conversations with the government. A nearby military airport will handle civil aviation traffic for the time being.
Fraport is on track for record-breaking revenue and profits. Schulte confirmed the prediction of 61 to 65 million passengers at their home hub and strong international growth. It appears that profits will surpass the pre-pandemic 2019 figure of 454 million euros this year, with the management even contemplating a possible 530 million euro forecast. However, this doesn't guarantee a dividend for shareholders, as the high debt ratio means no dividend is being proposed for 2024. This policy will change no later than the opening of Terminal 3.
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- The new terminal in Frankfurt, operated by Fraport, will be located on Runway West and is expected to open after the Easter holidays in 2026, serving approximately 19 million additional passengers annually.
- At the annual general meeting, Stefan Schulte, the CEO of Fraport, announced that Terminal 2 in Frankfurt will close for renovations after the completion of the new terminal, with estimated investment costs of 4 billion euros.
- In addition to its projects in Frankfurt, Fraport is involved in the development of the airport in Hesse, focusing on the installation of 37,000 solar panels along the west runway to contribute to sustainable air traffic.
- Fraport has been actively involved in global projects, such as the joint venture airport in Antalya, Turkey, which aims to accommodate up to 65 million passengers annually upon completion before the 2025 peak travel season.
- During the annual general meeting, Fraport also reported on the progress of its project in Frankfurt am Main Airport, highlighting the potential for record-breaking revenue and profits, surpassing the 2019 pre-pandemic figure of 454 million euros this year, primarily driven by strong international growth and substantial activity in air traffic.
Source: www.stern.de
