(RTTNews) - Fraport (FRA.DE, 0O1R.L, FPRUF.PK) reported that its first half Group EBITDA declined by 95.6 percent to 22.6 million euros from last year. Group EBIT was minus 210.2 million euros compared EBIT of 279.1 million euros, previous year. The Group result was a loss of 231.4 million euros compared to profit of 164.9 million euros.
First half Group revenue declined by 48.9 percent to 910.6 million euros. Adjusting for revenue from construction relating to capacitive capital expenditure at Fraport's subsidiaries worldwide (based on IFRIC 12), Group revenue decreased by 47.6 percent to 720.4 million euros.
Frankfurt Airport's passenger traffic fell by 94.4 percent year-on-year in the April-to-June 2020 period, while declining by a total of 63.8 percent during the first half.
Fraport noted that it was able to cut operating expenses in the second quarter by nearly 40 percent for the Group (excluding expenses related to the application of IFRIC 12) and by about 30 percent at the Frankfurt location. The company's plan is to reduce around 3,000 to 4,000 of the approximately 22,000 jobs across Fraport's Group companies in Frankfurt.
CEO Schulte stated: "Even in 2022/2023, we still expect passenger volumes at Frankfurt Airport to be around 15 to 20 percent below the high of 2019. We must therefore streamline and downsize our company to make it even more efficient."
Fraport expects traffic at Frankfurt Airport and all of the Group's airports to decline by a high double-digit percentage rate during the current year. The executive board is maintaining its full 2020 outlook. Group EBIT is expected to be negative and the Group result is forecasted to remain clearly negative.
The company currently has nearly 3 billion euros in cash and committed credit lines. Fraport said liquidity is secured until at least the end of 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.