German airport operator Fraport nudges up outlook, sees huge 2024 China boost

Frankfurt Airport operator Fraport Tuesday said its 2023 core profit would hit the upper half of its forecast range after second-quarter earnings were boosted by strong travel demand. Finance chief Matthias Zieschang forecast a "huge and significant" increase in Chinese passengers travelling to and from Frankfurt next year, with capacity set to reach up to 90% of pre-pandemic levels by December from under 40% in the second quarter. "Passengers with high purchasing power are coming back," Zieschang said. The German group, which operates 28 airports around the world, expects group earnings before interest, taxation, depreciation and amortisation (EBITDA) to reach the upper half of the previously projected range of E1.04-1.20b this year. Net profit should come in at the upper half of a range of E300-420m, it said. Demand for leisure travel, which has boosted profits for airlines and airports since pandemic restrictions ended last year, shows little sign of abating despite squeezed household incomes. Traffic at Fraport's home Frankfurt base grew 29% in the first half, reaching around 87% of 2019 traffic in July, preliminary figures showed. Full-year passenger numbers are likely to end in the middle of a forecast range of 80-90% of 2019 levels.<br/>