Fraport Group, which operates
Frankfurt Airport and 30 other airports around the world, has reported a net loss
of €537.2 million for the first nine months of 2020, despite comprehensive cost-saving measures and delaying the
opening of Frankfurt’s new terminal 3 by at least two years.
It said group revenue in the
first nine months had decreased by 53.8 per cent year-on-year to €1.32
billion. Passenger traffic at Frankfurt Airport declined by 70.2 per cent
year-on-year to 16.2 million travellers between January and September
2020.
Fraport’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 per cent of our total operating
expenses recorded at the Frankfurt location during the 2019 business year.”
The company said it would cut 4,000
jobs and reduce capital expenditure by €1 billion over the medium and long term,
in particular relating to investments in existing terminal buildings and apron
area at Frankfurt Airport.
The group added: “Regarding
construction of the new Terminal 3, the current demand situation also provides
an opportunity for extending the time frame required for specific building
measures or the awarding of construction contracts.
“Fraport currently plans to
open Terminal 3 – comprising the main terminal building with Piers H and J, as
well as Pier G – for the 2025 summer schedule. However, the actual date of
completion and inauguration for the new terminal will ultimately depend on how
demand develops.”
Terminal 3 was originally slated
to open in 2023.
Schulte said: “We currently
expect Frankfurt Airport’s passenger traffic in 2021 to reach only 35 to 45 per
cent of the 2019 level, in particular due to the anticipated very weak first
quarter 2021. Even in 2023/24, passenger figures will probably still only reach
80 to 90 percent of pre-crisis levels.”
Berlin's new Brandenburg airport, nine years late and billions of euros over budget, has opened this week.