Fraport Group Interim Report - First Half 2016: Fraport Reports Solid Performance in Challenging Environment

Frankfurt (ots) - Geopolitical situation and restrained tourist
bookings affect several Group airports

In the first half of 2016, the Fraport Group achieved revenue of
just over EUR 1.2 billion. Although this represents a EUR 17.1
million (or 1.4 percent) decline year-on-year, it must be taken into
account that a change in the Group's scope of consolidated companies
occurred in the previous business year. During 2015, Fraport sold 51
percent of its capital shares in the FCS Frankfurt Cargo Services
subsidiary and also made a full disposal of Air-Transport IT
Services, both formerly wholly-owned subsidiaries. Adjusting for
these changes, Group revenue in the first half of 2016 advanced by
EUR 19.2 million, up 1.6 percent. Revenue was positively impacted by
higher revenue from the sales of land, among other factors. Outside
of Frankfurt, the Group's subsidiaries, Lima Airport Partners, Twin
Star and AMU Holdings Inc., also contributed to revenue growth. Among
other things, declining passenger volumes at Frankfurt Airport
contributed to negative effects on revenue.

The Group's EBITDA (earnings before interest, tax, depreciation
and amortization) declined by 1.7 percent to EUR 378.4 million in the
first six months of 2016. This was also due to the slowdown in
passenger traffic at Frankfurt Airport and the corresponding drop in
retail revenues. With depreciation and amortization remaining almost
constant, Group EBIT reached EUR 214.6 million (down 3.3 percent).
The slightly improving financial result as well as lower income tax
expenses led to a Group result of EUR 99.7 million (down 3.2
percent). Higher cash flow used in investing activities and one-off
tax effects in the first quarter of 2016 caused free cash flow to
contract by EUR 40.4 million to EUR 149.3 million.

Fraport AG's executive board chairman, Dr. Stefan Schulte,
emphasized that the Group achieved solid first-half results despite
the challenging environment. Schulte said: "With air traffic being
negatively impacted by geopolitical circumstances, several of our
Group airports experienced significant traffic declines." Thus,
Fraport AG's executive board has revised its passenger forecast for
Frankfurt Airport and is now expecting a slight drop in passenger
traffic. Schulte, however, reconfirmed the Group's financial target
for the full year: "Also taking into account the expected positive
effects resulting from the sale of a partial stake in St. Petersburg,
we are maintaining our outlook for the Group's asset, financial, and
earnings position for the 2016 business year, despite the challenging
environment."

Fraport's home-base Frankfurt Airport (FRA) welcomed a total of
28.7 million passengers in the first six months of 2016, representing
a 0.9 percent decline year-on-year. In particular, the second quarter
saw flight bookings drop amid travelers' concerns after terrorist
attacks in various countries. Cargo throughput (airfreight + airmail)
rose by 0.4 percent in the reporting period, to over 1.0 million
metric tons. Aircraft movements decreased by 1.0 percent to some
227,000 takeoffs and landings, reflecting airlines' ongoing
consolidation measures and the general trend towards deployment of
larger aircraft. Accumulated maximum takeoff weights (MTOWs), by
contrast, climbed by 1.2 percent - reaching a new record high.

Fraport AG's international portfolio of airports reported mixed
results in the first half of 2016. Ljubljana Airport (LJU) in
Slovenia welcomed 598,271 passengers in the January-to-June period, a
4.5 percent decline on the previous year (in June 2016, down by 9.2
percent to 135,757 passengers). At Lima Airport (LIM) in Peru's
capital, by contrast, traffic soared by 11.0 percent to 8.9 million
passengers (in June 2016, up 13.0 percent to 1.5 million passengers).
The two Twin Star airports of Varna (VAR) and Burgas (BOJ) on the
Bulgarian Black Sea coast also reported significant traffic growth:
combined, the two airports welcomed 1.2 million passengers - an
increase of 24.8 percent year-on-year (in June 2016, up 23.4 percent
to 779,938 passengers). Passenger numbers at Antalya Airport (AYT) in
Turkey continued to decline. In the first half of year, traffic at
AYT contracted by 30.5 percent to 7.3 million passengers (in June
2016, down 47.1 percent to 1.9 million passengers). Also Pulkovo
Airport (LED) in St. Petersburg, Russia, experienced a noticeable
slowdown in the first six months of the year, with traffic dropping
by 6.5 percent to 5.7 million passengers (in June 2016, down 7.6
percent to 1.4 million passengers). Hanover Airport (HAJ) in northern
Germany also registered a slight 0.7 percent decline in traffic to
2.4 million passengers (in June 2016, down 2.9 percent to 521,676
passengers). By contrast, Xi'an Airport (XIY) in central China
continued its strong growth path of recent years. In the first half
of 2016, traffic at XIY climbed by 11.3 percent to 17.5 million
passengers (in June 2016, up 10.8 percent to 2.9 million passengers).

The Group Interim Report can be found on the Fraport website at
http://ots.de/qh8vB

Contact:
Fraport AG
Christopher Holschier
Spokesperson
Press Office, Corp. Communications
60547 Frankfurt, Germany
Telephone: +49 69 690-70553
E-mail: c.holschier@fraport.de
Internet: www.fraport.com
Facebook: www.facebook.com/FrankfurtAirport