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Saturday, January 28, 2023

Fraport transmits inflation to airlines


FRANKFURT – Inflation outpaces fee planning: Fraport is bracing airlines for major fee increases at its airports. In Frankfurt, Fraport will no longer be able to turn the price screw before 2024 – but the late jump in prices should then catch up all the more violently with Lufthansa and Condor.

Inflation does not escape Frankfurt airport. “We are affected by inflation,” Fraport chief financial officer Matthias Zieschang said Tuesday in Frankfurt. “70% of our expenses are labor costs, higher wages mean an increasing cost burden for us.”

For the experienced financier, however, this is only one side of the equation. “We have the power to pass these rising costs onto demand through higher fees – and we are determined to do so,” Zieschang said. “We have already reported it to the market.”

According to Zieschang, concessions and royalty mechanisms leave room for price adjustments. In Greece, for example, the inflation rate is multiplied by a factor of 0.9 “in a simple procedure”. With current inflation rates, “we will start next year with a fee increase of around 8%,” Zieschang said.

At Lufthansa’s Frankfurt hub, however, fee inflation won’t hit the airlines hard until 2024. “For next year (the salary increase) is already set at 4.9%,” said said Zieschang. “We have to look to 2024 – there is a gap of a year.”

Always more self-paying

Fraport now expects passenger numbers to rise again for the hub – and a “sustainable change” in the passenger structure, Zieschang said. The current mix of 30% business travelers and 70% self-guided travelers will stabilize at a “20 to 80 ratio” in the long term.

© aero.de | Ill. : A.Mohl | 08/11/2022 06:48


Source aero.de

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