German airport operator Fraport is set to receive approximately $189.8m (€160m) as compensation for maintaining operational readiness at Frankfurt Airport (FRA) during the first Covid-19 lockdown last year.
The compensation to be received from the German and State of Hesse governments will cover the costs that were incurred to maintain the airport operations during the pandemic.
Go deeper with GlobalData
Fraport stated that the compensation will have a positive impact on the operating result (EBITDA) and strengthen its equity position.
Earlier this year, the German federal and state governments decided to support airports in the country, which were severely affected by the Covid-19 pandemic.
Fraport executive board chairman Dr Stefan Schulte said: “We are still undergoing the greatest crisis in modern aviation, resulting in significant losses. During the first Covid-19 lockdown, we kept Frankfurt Airport continuously open for repatriation flights and vital cargo traffic, even though a temporary closure would have made more sense economically at that time.
“This compensation that we will receive from the German and Hesse governments is a clear sign of support for maintaining airport operational infrastructure during an unprecedented crisis.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The payment also strongly contributes further to stabilising Fraport’s financial situation. This is also supported by the noticeable increase in demand that we are currently experiencing in Frankfurt.”
Last month, the company’s subsidiary Fraport Slovenija inaugurated a new passenger terminal at Ljubljana Airport (LJU) in Slovenia.
Fraport invested around €21m in the new 10,000m² terminal, which has been developed to provide increased services.
With more space and comfort, the new facility has doubled the airport’s terminal capacity to handle more than 1,200 passengers an hour.
