Fraport AG on the Upswing: Noticeable Increase in Results Despite Difficult Market Conditions

3RD QUARTER 2003 (FIRST NINE MONTHS)
FRAPORT AG ON THE UPSWING: NOTICEABLE INCREASE IN RESULTS
DESPITE DIFFICULT MARKET CONDITIONS

Source:
Fraport AG Frankfurt Airport Services

Release date and time:
13.11.2003 - 08:55

   Frankfurt, Germany (ots) - In the first nine months of 2003,
Fraport AG Frankfurt Airport Services Worldwide posted a 1.8 percent
increase in Group revenues to EUR 1,368.8 million.  Group profits of
EUR 106.1 million exceeded the previous year's figure by 27.4
percent.  Fraport AG's executive board chairman, Dr. Wilhelm Bender,
said he was "very satisfied with what has been achieved in the first
nine months of 2003".  So far this year, Fraport AG's overall
financial development has reached expectations, despite many negative
external factors.

   The climb in revenues was mainly due  to increasing demand for
security services - including the 100-percent screening of hold
baggage that has been in operation at airports throughout the
European Union since January 2003.  Because of the effects of the
Iraq conflict, SARS (Severe Acute Respiratory Syndrome), and the
stalled global economy, Fraport registered a drop in income from
airport charges - which are dependent primarily on air traffic
volumes.

   From January to September 2003, the Group's total passenger volume
reached 53.3 million, 0.5 percent more than in the corresponding
period last year.  Frankfurt Airport (FRA) - the most important
airport of the Fraport Group - served 36.5 million passengers in the
first three quarters of 2003, down 1.3 percent from the same period
last year.  Antalya Airport (AYT) recorded a 3.7 percent drop in
passenger traffic during January to September 2003; a noticeable
rejuvenation of passenger demand in the third quarter partly offset
the loss resulting from the Iraq war.  Due to its focus on the
low-cost market the Group's Frankfurt-Hahn Airport (HHN) experienced
substantial growth in passenger figures, which jumped by almost 72
percent.

   Cargo volumes and aircraft movements at Frankfurt Airport reached
a similar level as in the previous year.  Compared to the first nine
months of 2002, airfreight and airmail at FRA grew by 0.7 percent to
1,200,898 metric tons, while aircraft movements increased slightly by
0.4 percent to 345,613 take-offs and landings.

   Bender spoke optimistically about the future traffic volume at the
Group's airports.  "For the remaining weeks of 2003, we expect
noticeable recovery in demand and further growth in passenger figures
compared to the same period last year," said Fraport's CEO.  Most
players in the aviation industry are confident that "the bottom of
the valley has been reached and that in the foreseeable future the
industry will again be riding the growth waves prevailing prior to
2001".

   The Fraport Group employed a total of 23,325 people (all
locations), some 2,595 more than in the corresponding period last
year.  ICTS Europe alone - Fraport's wholly-owned subsidiary that
provides aviation security services throughout Europe - saw its
employment climb by 2,370 people.  Correspondingly, revenue growth
from security services was offset by additional costs for the extra
security staff required.  Thus, personnel expenses rose by 8.5
percent to EUR 688.0 million.  Material costs remained at
approximately the same level as last year, slightly declining by 0.3
percent to EUR 358.4 million.

   Earnings before interest, tax, depreciation and amortization
(EBITDA) declined 1.8 percent to EUR 394.4 in the nine-month
reporting period.  There was a positive effect compared to the
previous year because of dividend income received in 2003 from
Antalya and because there was no write down required in the first
nine months of 2003, unlike in 2002 when an extraordinary write-down
was required for the Manila project.

   Fraport's profit from ordinary operations reached EUR 210.5
million, a 6.7 percent increase over the previous year's figure.
This growth was primarily due to the improved financial result.
Growing 27.4 percent over the corresponding period last year, the
Group profit of EUR 106.1 million benefited from a lower Group tax
rate.

   Earnings per share, according to IFRS (International Financial
Reporting Standards), increased from EUR 0.92 to EUR 1.18.

   Frankfurt Airport's passenger figures for the entire year 2003 are
expected to remain marginally below last year's level, due the
effects of the Iraq war, SARS and the weak economy.

   If no further risks are encountered in the fourth quarter of 2003,
Fraport expects that the EBITDA and Group profit will reach similar
values as last year - adjusted for the extraordinary write-down of
the Manila project.  "Fraport AG is steering a clear course through
stormy weather," said Bender.  "Today, the company is extremely well
positioned strategically and with its high degree of job security can
respond flexibly."  This will benefit Fraport especially when the
global economy will be gathering steam again in the coming year.


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