Fraport Third Quarter 2024 Earnings: Beats Expectations

Fraport AG, the Frankfurt Airport operator, delivered a strong performance in the third quarter of 2024, with earnings that surpassed market expectations. The company's international portfolio played a significant role in driving revenue growth, offsetting slower growth at the Frankfurt site. This article explores Fraport's Q3 2024 earnings, the key drivers behind its performance, and the implications for its long-term growth prospects.



Fraport's revenue grew by 11.0% to €1.354 billion in the third quarter, driven by a 4.9% increase in passenger numbers at Frankfurt Airport and robust growth in international subsidiaries. The company's international business, particularly in Lima, Fraport Greece, and Antalya, contributed significantly to this growth. The strong performance in the international portfolio helped Fraport achieve a solid quarter despite challenging market conditions in Germany.



EBITDA edged up by 1.2% to €483.7 million in the third quarter, primarily due to extraordinary effects occurring during the same period in the previous year. Despite this, Fraport's Group result remained almost identical to the previous year, at €273.2 million. The company's earnings growth was impacted by increased concession charges and the takeover of a new concession at Fraport USA. However, the positive passenger development at the Frankfurt site and international airports, particularly in Lima and Greece, offset these higher operating expenses.

The closure of the airport in Porto Alegre due to flooding negatively impacted Fraport's Q3 2024 earnings. This event led to a €1.5 million decrease in revenue and a €0.5 million reduction in EBITDA. Despite this setback, Fraport's overall performance remained solid, with revenue growth of 11.0% and a 1.2% increase in EBITDA.



Fraport's solid third-quarter result, driven by passenger growth and international portfolio expansion, contributed significantly to its overall earnings growth in 2024. The company's revenue increased by 11.0% to €1.354 billion, with adjusted revenue up 10.9% to €1.201 billion. EBITDA edged up 1.2% to €483.7 million, despite extraordinary effects and the closure of the airport in Porto Alegre due to flooding. This quarterly performance, coupled with strong international growth, particularly in Lima, Fraport Greece, and Antalya, has led to a 9.5% increase in the Group's EBITDA for the first nine months of 2024, reaching €1.051 billion. Consequently, the Group result (net profit) rose by 21.6% to €434.0 million, demonstrating Fraport's resilience and growth potential.

In conclusion, Fraport's third-quarter 2024 earnings beat market expectations, driven by strong international portfolio growth and solid performance at the Frankfurt site. Despite challenges in the German market, the company's earnings growth was supported by its diverse international portfolio and effective cost management strategies. Looking ahead, Fraport's long-term growth prospects appear promising, given its diverse international portfolio and the potential for further expansion in growth-heavy markets. However, continued vigilance is needed to manage regulatory costs and capacity constraints in the German market.