Fraport's profit more than doubles, but misses forecast on high costs

Frankfurt Airport operator Fraport said Thursday that Q1 core profit more than doubled as passenger numbers rebounded, but the results missed market expectations as high staffing and energy costs weighed. The group, which operates 28 airports around the world, reported a 123.9% year-on-year rise in quarterly core earnings (EBITDA) to E158.3m. This was 21% below the pre-pandemic 2019 figure. It said the results were boosted by an ongoing recovery in passenger number across its global network of airports, with traffic at its home-base airport in Frankfurt growing by 56% in the first quarter. But analysts at Jefferies said that adjusted for one-offs in the aviation division, Fraport's EBITDA was 8% below consensus due to higher staff and energy costs. "Cost inflation remains the key headwind for Fraport," Jefferies wrote in a note to clients. After staff shortages caused chaos at European airports last year, the group has been focusing on a recruitment drive across Europe in order to prepare for increasing footfall this summer. Fraport said it expected passenger traffic in Frankfurt to grow between 15% and 25% this summer.<br/>