The coronavirus travel restrictions that brought global travel to a standstill in the second quarter of the year dragged Frankfurt Airport operator Fraport (FRA.DE) deep into loss in the first half of this year.
Fraport said on Tuesday that the restrictions led to a “massive drop in traffic at all Group airports,” which led to a “noticeable decline in revenue and, as a result, a massive decline in earnings” in the first six months of 2020.
Revenue plunged by nearly 50% to €910m (£819m, $1,072m) in the first half of 2020 compared with the same period in 2019, with a net loss for the Group of €231.4m.
Passenger numbers in Frankfurt in the first half of the year fell by nearly 64% to 12.2 million passengers – and are not expected to pick up in any significant way for the rest of the year. Fraport expects a net loss for the year as a whole.
Fraport said in June that it plans to cut between 3,000 and 4,000 of its 22,000 jobs across the group.
It said in its report that the “feared second wave” of the virus could have a significant impact on the global economy throughout the rest of the year.
Fraport’s results mirror the crisis that the pandemic has caused for airports and airlines globally. Last week, Heathrow Airport reported a 96% drop in passenger numbers in the second quarter, with revenue collapsing by 85% to £119m and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) at a loss of £93m. Heathrow owner said its adjusted loss before tax in the first half of 2020 was £471m.