Air traffic remains unchanged or shows no signs of improvement, according to Fraport's assessment - Grant Aid Provided as Public Service Remuneration, According to the Commission's Report
Frankfurt Airport Sees Uptrend in Aviation Amidst Challenges
Frankfurt Airport, Germany's major aviation hub, is experiencing an uptrend in aviation, according to Fraport CEO Stefan Schulte. The current factors driving this trend include supportive federal government policies, development of feeder services, and domestic demand growth.
These policies are presumed to facilitate operational improvements and capacity utilization, contributing to a 1.4% rise in passenger numbers in the first half of 2025, bringing the total to about 29.1 million. Despite passenger numbers still being below 2019 levels, domestic demand has seen a 3.0% increase, supported by feeder connections [1].
However, intercontinental traffic has slightly declined due to geopolitical tensions affecting certain regions such as the Middle East, resulting in a -7.8% traffic decline [1]. To counteract this, Fraport is expanding airport operations and utilising advanced technologies like agentic AI and digital optimization in cooperation with Lufthansa. These measures aim to improve handling efficiency and operational resilience [3][4].
The positive impact of federal government policies is implicit in the general business environment described by Fraport's CEO and the company’s confidence in its financial and operational outlook for 2025. Government support likely includes regulatory stability, infrastructure investment, and facilitation of airport and airline operations [1][4].
In terms of financial performance, Fraport's operating profit before interest, taxes, depreciation, and amortization (Ebitda) increased by eight percent in the second quarter, reaching around 384 million euros. However, net income for shareholders fell by 17 percent in the same period, to 111 million euros [2].
Despite the positive trends, Fraport anticipates a subdued development in German aviation, with the CEO expecting significant fewer passengers at Germany's largest airport compared to before the corona pandemic [5]. For the current year, Fraport's management aims for a moderate increase in operating profit and still expects up to 64 million passengers at Germany's largest airport [6].
However, the CEO, Stefan Schulte, believes that growth impulses in German aviation are far off due to the federal government not lowering location costs [7]. This statement was made during the presentation of the second quarter figures [8][9].
Meanwhile, Fraport's airports abroad are experiencing more growth than the home hub [10]. Despite a 2% decrease in revenue in the second quarter, amounting to around 1.1 billion euros, due to special effects in the previous year [2], Fraport's profit forecast for the current year remains unchanged [11].
In summary, the uptrend at Frankfurt Airport is driven by growth in domestic passenger demand supported by feeder services, stable cargo volumes aligned with global economic conditions, expansion and optimization of airport operations supported by technological innovations, and government policies fostering favorable conditions for aviation growth. However, the CEO's concerns about the federal government's inaction on lowering location costs could potentially hamper the growth of German aviation.
References: [1] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-sees-passenger-number-growth-in-first-half-of-2025 [2] https://www.fraport.com/en/company/press/press-releases/2025/fraport-reports-second-quarter-results-2025 [3] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-and-lufthansa-join-forces-to-develop-digital-optimisation-concept [4] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-and-lufthansa-sign-memorandum-of-understanding-on-agentic-ai-cooperation [5] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-expects-significantly-fewer-passengers-in-2025-than-before-the-corona-pandemic [6] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-aims-for-moderate-increase-in-operating-profit-in-2025 [7] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-ceo-growth-impulses-in-german-aviation-are-far-off-due-to-the-federal-government-not-lowering-location-costs [8] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-ceo-growth-impulses-in-german-aviation-are-far-off-due-to-the-federal-government-not-lowering-location-costs [9] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-ceo-growth-impulses-in-german-aviation-are-far-off-due-to-the-federal-government-not-lowering-location-costs [10] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-and-lufthansa-join-forces-to-develop-digital-optimisation-concept [11] https://www.fraport.com/en/company/press/press-releases/2025/frankfurt-airport-aims-for-moderate-increase-in-operating-profit-in-2025
- In order to maintain and improve the growth trend at Frankfurt Airport, Fraport could consider incorporating vocational training programs for staff to enhance operational efficiency and resilience, which can be essential in achieving the goal of handling more passengers while maintaining high standards of service.
- Additionally, the German government could consider implementing community policies that offer incentives or funding for vocational training in the aviation industry, as this could lead to a more skilled workforce, potentially boosting business and aviation growth in the long run.
