(Reuters) -Frankfurt Airport operator Fraport posted on Tuesday a modest increase in its passenger numbers during the third quarter, as high location costs for German carriers hindered the recovery in travel demand.
Passenger numbers in Frankfurt in the reported quarter rose only by 1.8%, coming in 13% lower than levels seen in 2019 – before the pandemic brought global travel to a standstill.
“The location costs set by regulators are too high in Germany. They are a major reason why our home market lags behind others in Europe in terms of the recovery of passenger numbers,” Fraport CEO Stefan Schulte said in a statement.
The company expects only minimal growth in passenger numbers during the winter, Schulte said.
According to German Aviation Association (BDL), record-high location costs for airlines cause Germany to fall behind recovery trend of air traffic in Europe. Passenger load factor in the first half of 2024 for Germany was 83%, while for other European states it amounted to 102%.
German labour union Verdi warned last week of job losses, as airlines leave German market due to high location costs.
Fraport said its core income (EBITDA) rose slightly to 483.7 million euros ($526.12 million) in the third quarter, up from 478.1 last year. Analysts from Jefferies, on average, had forecast an EBITDA of 492 million euros.
Operating income was weighed down by multiple negative factors including the impact of Brazil’s Porto Alegre airport closure due to flooding.
The company reaffirmed its expectations for key financial figures for the current fiscal year to be in the middle of forecasts.
($1 = 0.9194 euros)
(Reporting by Amir Orusov; Editing by Sherry Jacob-Phillips)
