Fraport AG maintains results forecast despite difficult market conditions

FRANKFURT (Germany) 14th August (PROTEXT/ots) - FRA > FraportAG Frankfurt Airport Services Worldwide released today its mid-term company report for the first six months of financial year2003. The airport operator achieved a sales increase of 2.6percent to 877.7 million. Despite a slight decrease in earningsin the first half-year, Fraport expects an EBITDA of 500million.

Against the background of the after-effects of the Iraqconflict, SARS and the continued worldwide economic downturn,Fraport registered a fall in sales from airport charges, whichare directly related to the volume of air traffic. The salesincrease for the Fraport Group resulted from the rise in demandfor security services (including the 100-percent baggage checksthat have been required since January 1, 2003), from which bothFrankfurt Airport as well as the Fraport subsidiary ICTS Europe,the European market leader for aviation-related securityservices, have benefited.

Group-wide, Fraport recorded 30.9 million passengers, a 1.6percent decline versus the same period last year. 22.5 millionpassengers used Frankfurt Airport, the Groups most importantlocation, 2.1 percent fewer than in the first half of 2002.Antalya was particularly affected by the war in Iraq andrecorded a 16.6 percent decline in the number of passengers.Positive developments were posted in the volume of cargo trafficand number of aircraft movements: Airfreight and airmail volumesrose at Frankfurt Airport by 2.2 percent to 798,556 metric tons;the number of take- offs and landings increased by 1.4 percent to225,665.

As of the end of June, Fraport employed 23,164 staff. Salesgrowth in the area of security services was offset by highercosts caused by the higher staff levels required. This was theprimary factor contributing to the 7.7 percent rise in personnelcosts to 461.6 million. Group-wide, non- staff costs sank by 7.1percent to 229.3 million.

The unfavourable economic conditions negatively affectingpassenger traffic, primarily at Frankfurt Airport, dampenedperiod results. At 226.1 million, EBITDA were 3.4 percent belowfirst half-year 2002; the EBITDA margin decreased by 1.6percentage points to 25.8 percent.

Fraport achieved results from ordinary business activitiesamounting to 103.3 million, a decline of 9.4 percent compared tothe same period last year. At 50.2 million, company earningswere 6.3 percent below first half-year 2002. Earnings per sharein line with IFRS declined from 0.59 to 0.56. As a result of the Iraq war, SARS and weak economicdevelopments, the number of passengers at Frankfurt Airport forfull-year 2003 are expected to remain slightly under last year.Should no further extraordinary events occur, Fraport expects toachieve EBITDA and annual net income equivalent to last yearsresults, adjusted for the effects relating to Manila.ENDS

For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide

Attn: Robert A. Payne - Manager International Press

60547 Frankfurt am Main, Germany, Tel.: +49 69.690.78547 /Fax: +49.69.690.60548, E-mail: r.payne@fraport.deInternet: www.fraport.com

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