Fraport Sees Higher 2026 Core Profit on Increased Passenger Traffic Capacity

Fraport sees moderate profit rise in 2026 as German fees weigh

Fraport's 2026 Outlook and Key Challenges

By Amir Orusov and Danny Callaghan

March 17 (Reuters) - German airport group Fraport guided for a slight rise in 2026 earnings on Tuesday, held back by high costs in its home market, even as the opening of a new Frankfurt terminal should support traffic growth.

Financial Projections and Passenger Traffic

The operator of Frankfurt Airport, Germany's busiest by passenger numbers, said it expected annual earnings before interest, taxes, depreciation and amortisation to be around 1.5 billion euros ($1.7 billion), versus 1.44 billion in 2025.

It forecast passenger traffic of between 65 million and 66 million in Frankfurt this year, up to 4.4% higher than last year, though still 10% below the pre-pandemic levels seen in 2019.

Challenges Facing the German Aviation Industry

Regulatory Costs and Operational Pressures

The German aviation industry faces several challenges, including high taxes and fees, German pilot union strikes and weather-related disruptions. Additional pressure comes from the fallout from the Middle East conflict, which has driven jet‑fuel prices higher and disrupted air routes.

CEO's Statement on Regulatory Impact

"We would be significantly better placed in Frankfurt if we did not have the excessive regulatory costs that continue to limit passenger growth in the German market," CEO Stefan Schulte said in the statement.

Terminal 3 Opening and Short-Term Financial Impact

Terminal 3, due to open on April 23, will support passenger growth but is set to weigh on results in the short term by 300-400 million euros due to higher depreciation and interest expenses.

Effects of Middle East Conflict

EFFECTS OF MIDDLE EAST CONFLICT

Fraport has not adjusted its 2026 outlook to include possible impacts of the escalating turmoil in the Middle East.

It said in the report that while the impact of the military escalation is difficult to assess, it may lead to booking reluctance or a diversion of passenger flows, weighing on business performance and earnings momentum this year.

Impact on Passenger Volumes and Regional Airports

Direct traffic volume on routes to and from the Middle East accounted for around 5% of Frankfurt's total passenger volumes in 2025, the company said.

The geopolitical situation could also affect traffic dynamics in Fraport's tourism-oriented airports in Bulgaria, Greece and Turkey, which together served around 80 million passengers last year.

Additional Information

($1 = 0.8708 euros)

(Reporting by Amir Orusov and Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)