Notes to the Consolidated Income Statement
5 Revenue
| Revenue | ||
|---|---|---|
| € million | 2024 | 2023 |
| Aviation | ||
| Airport charges | 925.5 | 814.4 |
| Security services | 262.1 | 239.2 |
| Other revenue | 46.9 | 45.2 |
| 1,234.5 | 1,098.8 | |
| Retail & Real Estate | ||
| Real Estate | 205.9 | 189.2 |
| Retail | 198.0 | 186.7 |
| Parking | 108.4 | 101.6 |
| Other revenue | 24.4 | 21.3 |
| 536.7 | 498.8 | |
| Ground Handling | ||
| Ground services | 369.2 | 342.8 |
| Infrastructure charges | 355.8 | 313.9 |
| Other revenue | 20.5 | 20.1 |
| 745.5 | 676.8 | |
| International Activities & Services | ||
| Aviation | 738.5 | 686.4 |
| Non-Aviation | 636.9 | 524.3 |
| Contract revenue from construction and expansion services (IFRIC 12) | 534.9 | 515.4 |
| 1,910.3 | 1,726.1 | |
| Total | 4,427.0 | 4,000.5 |
The Retail & Real Estate segment includes income from operating leases from renting terminal areas, offices, buildings, and properties. No purchase options have been agreed upon. When renting retail space, either minimum rents or variable, revenue-related rents apply, depending on the occurrence of contractually defined conditions. Predominantly variable rents are agreed for these areas. Overall, during the fiscal year, revenue-related rent of €160.6 million (previous year: €154.5 million) was realized. The underlying lease contracts in the Retail section for fiscal year 2024 contain contractually agreed minimum lease payments of €44.9 million (previous year: €40.1 million).
Properties were predominantly rented in the form of assigned hereditary building rights. On the reporting date, the remaining term of hereditary building rights contracts is 37 years on average (previous year: 37 years).
The acquisition and production costs of the leased buildings and land amount to €560.2 million (previous year: €535.4 million). Cumulative depreciation and amortization came to €414.4 million (previous year: €396.8 million), of which depreciation and amortization amounted to €6.7 million for the fiscal year (previous year: €6.0 million).
Revenue in the International Activities & Services segment is allocated to the Aviation and Non-Aviation sections as well as contract revenue from construction and expansion services related to airport operating projects. The Aviation revenue includes revenue, in particular, from airport charges as well as security services (€738.5 million; previous year: €686.4 million). Revenue in the Non-Aviation section was €441.7 million (previous year: €348.3 million), resulting from retail and real estate activities as well as parking. In addition, €104.5 million (previous year: €95.9 million) was attributable to infrastructure charges and ground handling services. Contract revenue from construction and expansion services related to airport operating projects in the amount of €534.9 million (previous year: €515.4 million) was attributed to Lima (€462.4 million; previous year: €465.7 million), Greece (€51.4 million; previous year: €36.9 million) as well as Fortaleza and Porto Alegre (€21.1 million; previous year: €12.8 million).
Revenue in the amount of €4,427.0 million (previous year: €4,000.5 million) resulted from €3,055.1 million (previous year: €2,771.1 million) from contracts with customers in accordance with IFRS 15. Other revenue relates to particular contract revenue from construction and expansion projects in accordance with IFRIC 12 as well as proceeds from rentals and other leases.
The total amount of future income from minimum lease payments arising from non-cancelable leases is as follows:
| Minimum lease payments | |||||||
|---|---|---|---|---|---|---|---|
| € million | Remaining term | Total | |||||
| Due in the 1st subsequent year |
Due in the 2nd subsequent year |
Due in the 3rd subsequent year |
Due in the 4th subsequent year |
Due in the 5th subsequent year |
Due from the 6th subsequent year |
2024 | |
| Minimum lease payments | 204.5 | 158.0 | 147.7 | 131.3 | 115.4 | 1,595.9 | 2,352.8 |
| Minimum lease payments | |||||||
|---|---|---|---|---|---|---|---|
| € million | Remaining term | Total | |||||
| Due in the 1st subsequent year |
Due in the 2nd subsequent year |
Due in the 3rd subsequent year |
Due in the 4th subsequent year |
Due in the 5th subsequent year |
Due from the 6th subsequent year |
2023 | |
| Minimum lease payments | 155.4 | 108.3 | 96.4 | 92.8 | 88.6 | 1,511.3 | 2,052.8 |
The future income from minimum lease payments includes the contractual unconditional minimum rental for the retail areas as well.
6 Other Internal Work Capitalized
| Other internal work capitalized | ||
|---|---|---|
| € million | 2024 | 2023 |
| Other internal work capitalized | 62.3 | 50.5 |
The other internal work capitalized primarily relates to engineering, planning, and construction services and services of commercial project managers, as well as other performance work. The internal work capitalized primarily arose as part of the expansion program and for the expansion, renovation, and modernization of the existing airport infrastructure at Frankfurt Airport.
7 Other Operating Income
| Other operating income | ||
|---|---|---|
| € million | 2024 | 2023 |
| Compensation claims Fraport Greece and Fraport Brasil | 52.3 | 18.6 |
| Gains from disposal of non-current assets | 4.2 | 1.4 |
| Income from compensation payments | 2.4 | 2.0 |
| Releases of allowances | 2.1 | 1.0 |
| Releases of special items for investment grants | 0.5 | 0.5 |
| Change in work-in-process | 0.1 | 0.0 |
| Effects from the transitional consolidation of FraSec Aviation Security GmbH | 0.0 | 11.1 |
| Settlement Agreement Fraport USA | 0.0 | 11.0 |
| Others | 25.0 | 13.4 |
| Total | 86.6 | 59.0 |
In the 2024 fiscal year, other operating income included effects from the Group company Fraport Greece to compensate for the negative economic impacts of the coronavirus pandemic in the amount of €28.0 million. In addition, the two Brazilian Group companies reported positive one-off effects totaling €24.3 million. These resulted, on the one hand, from realized reimbursement claims for the effects of the coronavirus pandemic at the Group company in Fortaleza. On the other hand, they were due to compensation for the damage caused by the flooding in Porto Alegre.
In the previous year, both Brazilian Group companies realized compensation claims related to the coronavirus pandemic amounting to €18.6 million. In addition, other operating income included effects from the interim consolidation of the Group company FraSec Aviation Security GmbH and the recognition of the remaining shares (49%) at a fair value of €11.1 million. Furthermore, income of €11.0 million was realized with the settlement of a legal dispute at the Group company Fraport USA.
8 Cost of Materials
| Cost of materials | ||
|---|---|---|
| € million | 2024 | 2023 |
| Cost of purchased services | –1,225.1 | –1,038.4 |
| Cost of construction and expansion services (IFRIC 12) | –534.9 | –515.4 |
| Cost of raw materials, consumables, supplies, and real estate inventories | –91.5 | –83.5 |
| Total | –1,851.5 | –1,637.3 |
In the context of the airport operating projects outside of Germany (see also note 49) the cost of purchased services includes accrued variable concession charges of €310.4 million (previous year: €245.7 million). The costs for construction and expansion services amounted to €534.9 million (previous year: €515.4 million).
9 Personnel Expenses and Number of Employees
| Personnel expenses and average number of employees | ||
|---|---|---|
| € million | 2024 | 2023 |
| Remuneration for staff | –980.2 | –881.1 |
| Social security and welfare expenses | –181.8 | –162.5 |
| Pension expenses | –40.4 | –32.4 |
| Total | –1,202.4 | –1,076.0 |
| Average number of employees | 2024 | 2023 |
| Permanent employees | 17,915 | 16,789 |
| Temporary staff (interns, students, and partially employed staff) | 1,086 | 1,051 |
| Total | 19,001 | 17,840 |
Additions to pension provisions and additions to obligations arising from time-account models are included in personnel expenses.
10 Depreciation and Amortization
| Depreciation and amortization | ||
|---|---|---|
| € million | 2024 | 2023 |
| Composition of depreciation and amortization | ||
| Goodwill | ||
| non-regular | 0.0 | 0.0 |
| Investments in airport operating projects | ||
| regular | –137.4 | –130.6 |
| Other intangible assets | ||
| regular | –14.4 | –14.0 |
| Property, plant, and equipment | ||
| regular | –358.5 | –355.7 |
| non-regular | –20.2 | 0.0 |
| Investment property | ||
| regular | –1.8 | –0.9 |
| Total | –532.3 | –501.2 |
Regular depreciation and amortization
The useful lives of property, plant, and equipment as well as other intangible assets were re-measured in the year under review, resulting in reduced depreciation and amortization of €11.9 million year on year (previous year: €11.7 million) and increased depreciation and amortization of €3.5 million (previous year: €25.7 million).
Non-regular depreciation and amortization
Non-regular depreciation and amortization of property, plant, and equipment amounting to €20.2 million related to depreciation and amortization on airport infrastructure at the Frankfurt site that is no longer recoverable. Of this amount, €20.0 million was primarily attributable to the Aviation segment.
11 Other Operating Expenses
| Other operating expenses | ||
|---|---|---|
| € million | 2024 | 2023 |
| Insurances | –40.6 | –35.7 |
| Consulting, legal, and auditing expenses | –33.4 | –27.3 |
| Rental and lease expenses | –21.1 | –14.5 |
| Other taxes | –16.7 | –12.0 |
| Costs for advertising | –15.9 | –17.7 |
| Write-downs of trade accounts receivable | –2.7 | –5.3 |
| Indemnities | –2.6 | –6.0 |
| Losses from disposal of non-current assets | –1.1 | –3.3 |
| Others | –86.1 | –70.9 |
| Total | –220.2 | –192.7 |
The rental and lease expenses result from existing rental and lease contracts for operating and office equipment, technical equipment and machinery as well as real estate with a contractual volume of under €0.1 million. On the grounds of materiality, no rights of use in accordance with IFRS 16 have been set aside for these contracts. The future minimum lease payments resulting from the contracts are presented in note 46. For additional comments, see note 4.
Among other things, other operating expenses relate to other administrative expenses (for example for travel and training costs as well as representation costs) as well as contributions and fees.
The consulting, legal, and audit expenses include Group auditor fees (disclosed in accordance with Section 314 (1) no. 9 HGB) amounting to €2.2 million (previous year: €1.6 million). They are comprised as follows:
| Group auditor fees | ||||
|---|---|---|---|---|
| € million | 2024 | 2023 | ||
| Fraport AG | Consolidated companies |
Fraport AG | Consolidated companies | |
| Audit services | 1.4 | 0.2 | 1.2 | 0.3 |
| Other assurance services | 0.5 | 0.0 | 0.1 | 0.0 |
| Tax consultancy services | 0.0 | 0.0 | 0.0 | 0.0 |
| Other services | 0.1 | 0.0 | 0.0 | 0.0 |
| Total | 2.0 | 0.2 | 1.3 | 0.3 |
The expenses for other assurance services were incurred in connection with the audit of the non-financial declaration, the audit of the Gas and Heat Price Brake Act, and the issuance of a Comfort Letter in the context of the bond issue. Expenses for other services relate to consulting services in the IT environment.
12 Interest Income and Interest Expenses
| Interest income and interest expenses | ||
|---|---|---|
| € million | 2024 | 2023 |
| Interest income | 144.6 | 100.9 |
| Interest expenses | –349.4 | –317.9 |
Interest income and interest expenses primarily include interest from non-current loans, promissory notes, bonds, and time deposits as well as interest expenses and interest income from interest cost added back on non-current liabilities, provisions, and non-current assets. The net interest payments of derivative financial instruments as well as interest income from securities are recorded as interest result.
| Interest income and interest expenses for financial instruments that are not recognized in income at fair value | ||
|---|---|---|
| € million | 2024 | 2023 |
| Interest income from financial instruments | 142.5 | 94.7 |
| Interest expenses from financial instruments | –347.2 | –307.4 |
Interest income from financial instruments include €33.6 million (previous year: €22.3 million) in income from financial instruments recognized at fair value. Interest expenses do not include any expenses from financial instruments measured at fair value through other comprehensive income.
13 Result from Companies accounted for Using the Equity Method
| Result from companies accounted for using the equity method | ||
|---|---|---|
| € million | 2024 | 2023 |
| Joint Ventures | 74.0 | 85.9 |
| Associated companies | 0.0 | –1.4 |
| Total | 74.0 | 84.5 |
The result using the equity method from joint ventures (see note 22) includes, among other things, the result after taxes from the operating Group company in Antalya in the amount of +€90.9 million (previous year: +€81.8 million), as well as the expenses from a contractually agreed tax settlement payment from Fraport AG to Frankfurt Airport Retail GmbH & Co. KG (FAR) of -€13.1 million (previous year: -€12.6 million).
14 Other Financial Result
The other financial result breaks down as follows:
| Other financial result | ||
|---|---|---|
| € million | 2024 | 2023 |
| Income | ||
| Foreign currency translation rate gains, unrealized | 0.1 | 1.4 |
| Foreign currency translation rate gains, realized | 4.5 | 12.5 |
| Valuation of derivatives | 1.7 | 1.1 |
| Valuation of other investments | 45.0 | 0.0 |
| Others | 0.3 | 0.6 |
| Total | 51.6 | 15.6 |
| Expenses | ||
| Foreign currency translation rate losses, unrealized | –0.9 | –1.4 |
| Foreign currency translation rate losses, realized | –3.5 | –12.1 |
| Valuation of derivatives | 0.0 | –16.5 |
| Others | –4.2 | –2.0 |
| Total | –8.6 | –32.0 |
| Total other financial result | 43.0 | –16.4 |
Income from the valuation of other investments results from measuring the shares in the “Holding VSS Limited Liability Company” (“VVSS”) at fair value. In December 2023, Fraport AG was allocated shares in the “Holding VSS Limited Liability Company” (“VVSS”), founded by the Russian state (NCG Holding Limited Liability Company), St. Petersburg, by virtue of Russian legal acts. On the basis of the same legal acts, all shares in the operating company of Pulkovo Airport transferred from Thalita Trading Ltd. to the newly founded VVSS. The shares in VVSS were not recognized as an asset in the Fraport AG consolidated statement of financial position, as Fraport had no control over the shareholder rights associated with the capital shares. In December 2024, the shares were sold for €45.0 million.
15 Taxes on Income
Income tax expense breaks down as follows:
| Taxes on income | ||
|---|---|---|
| € million | 2024 | 2023 |
| Current taxes on income | –73.0 | –65.9 |
| Deferred taxes on income | –106.8 | –57.5 |
| Total | –179.8 | –123.4 |
Current income tax expense consists of current taxes on income for the year under review (€96.2 million, previous year: €57.9 million) and taxes on income for previous years (€23.2 million (income), previous year: €8.1 million (expense)).
The tax expenses include corporation and trade income taxes, the solidarity surcharge of the companies in Germany, and comparable taxes on income of the foreign companies. The effective taxes result from the taxable results of the fiscal year and any revisions to previous assessment periods, to which the local tax rates of the respective Group company are applied.
Deferred taxes are generally measured using the applicable tax rate of the respective country. For domestic companies, a combined income tax rate of around 32%, which includes trade tax, is applied.
Deferred taxes are recognized for all temporary differences between the tax and IFRS financial statements, for utilizable carry-forwards of unused tax losses, as well as for carry-forwards of tax-deductible interest.
The assessment of the recoverability of deferred tax assets is based on the probability that the tax loss carryforwards and interest carryforwards will be utilized. This depends on the generation of future taxable profits during the periods in which the tax loss carryforwards/interest carryforwards can be utilized.
As at December 31, 2024, based on current information, the Fraport Group in Germany had non-utilizable trade tax losses carried forward of €5.4 million and corporation tax losses carried forward of €0.3 million attributable to taxes (previous year: €5.4 million related to trade taxes and €0.3 million to corporation taxes). The loss carryforwards that are not expected to be utilized result from Fraport Immobilienservice und -entwicklungs GmbH & Co. KG and FraSec Fraport Security Services GmbH and can be carried forward indefinitely. In addition, in other countries there are non-usable loss carryforwards of €72.4 million (previous year: €81.0 million), which can be carried forward indefinitely.
The Fraport Group has utilizable loss carryforwards in Germany of €170.0 million (corporation taxes; previous year: €443.6 million) and €358.2 million (trade taxes; previous year: €565.9 million) as well as utilizable losses carried forward aboard of €120.4 million (previous year: €139.7 million).
The excess of deferred tax assets for companies that reported tax losses in 2023 or 2024 was €10.4 million as at December 31, 2024. These deferred tax assets were recognized because, based on projected results, utilization of the temporary differences or loss carryforwards is expected.
For temporary differences in connection with shares in subsidiaries amounting to €1,013.5 million (previous year: €760.0 million), no deferred tax liabilities were recognized, as Fraport can control the timing of the reversal and it is not expected that these differences will reverse in the foreseeable future. These potential tax liabilities are, however, limited to 1.59% of the difference as well as local withholding taxes in the case of future dividend payments from certain foreign subsidiaries.
In addition, deferred taxes result from consolidation measures. Pursuant to IAS 12, no deferred tax is recognized in the context of initial consolidation with respect to goodwill capitalized or any impairment losses of goodwill.
Deferred tax assets and liabilities are netted insofar as these income tax claims and liabilities relate to the same tax authority and to the same taxable entity or a group of different taxable entities that, however, are assessed jointly for income tax purposes.
Deferred taxes resulting from temporary differences between tax financial valuation and assets/liabilities accounted according to IFRS are assigned to the following financial position items:
| Allocation of deferred taxes | ||||
|---|---|---|---|---|
| € million | 2024 | 2023 | ||
| Deferred tax assets |
Deferred tax liabilities |
Deferred tax assets |
Deferred tax liabilities | |
| Investments in airport operating projects | 23.0 | –135.6 | 21.9 | –121.0 |
| Other intangible assets | 1.0 | –12.4 | 1.5 | –13.1 |
| Property, plant, and equipment | 2.7 | –293.5 | 2.8 | –284.4 |
| Financial assets | 4.1 | 0.0 | 7.5 | 0.0 |
| Accounts receivable and other assets | 1.8 | –48.7 | 2.2 | –30.4 |
| Provisions for pensions | 5.3 | 0.0 | 5.3 | 0.0 |
| Other provisions | 19.7 | –7.8 | 30.9 | –2.8 |
| Liabilities | 255.2 | 0.0 | 228.7 | –0.1 |
| Securities and financial derivatives | 1.8 | 0.0 | 9.9 | –2.1 |
| Losses and interest carried forward | 126.0 | 0.0 | 206.6 | 0.0 |
| Total separate financial statements | 440.6 | –498.0 | 517.3 | –453.9 |
| Offsetting | –349.9 | 349.9 | –418.5 | 418.5 |
| Consolidation measures | 2.3 | –16.0 | 3.5 | –16.8 |
| Consolidated Statement of Financial Position | 93.0 | –164.1 | 102.3 | –52.1 |
The vast majority of the deferred tax assets and liabilities result from non-current assets (investments in airport operating projects, other intangible assets, property, plant, and equipment) and non-current liabilities (primarily concession liabilities), as well as utilizable losses and interest carried forward.
Over the fiscal year, equity-decreasing deferred taxes of €12.3 million (previous year: equity-decreasing deferred taxes of €11.3 million) from the change in the fair values of financial derivatives and securities were recognized directly in shareholders’ equity without affecting profit or loss. The equity-increasing deferred taxes resulted primarily from the revaluation of defined benefit plans to the value of €0.2 million (previous year: equity-increasing deferred taxes to the value of €0.8 million).
The following reconciliation shows the relationship between expected tax expense and tax expense in the consolidated income statement:
| Tax reconciliation | ||
|---|---|---|
| € million | 2024 | 2023 |
| Earnings before taxes on income | 681.7 | 553.9 |
| Expected tax income/expense1) | –216.3 | –175.8 |
| Tax effects from differences in foreign tax rates | 22.0 | 16.6 |
| Tax credit from tax-free income | 27.4 | 12.4 |
| Taxes on non-deductible operating expenses | –6.4 | –7.4 |
| Non-creditable non-German withholding tax | –3.3 | –3.9 |
| Permanent differences including non-deductible tax provisions | –26.0 | –4.5 |
| Result of companies accounted for using the equity method | 22.6 | 31.0 |
| Recognition of previously unrecognised deferred tax assets on loss carryforwards | 3.0 | 26.7 |
| Trade effects and other effects from local taxes | –7.0 | –5.5 |
| Prior-period taxes | 5.4 | –12.0 |
| Others | –1.2 | –1.0 |
| Taxes on income according to the income statement | –179.8 | –123.4 |
| 1) Expected tax rate around 32%, for corporation tax 15.0% plus solidarity surcharge 5.5 % and trade tax of around 15.9 %. | ||
The consolidated tax rate for the 2024 fiscal year is 26.4% (previous year: 22.3%).
16 Earnings per Share
| Earnings per share | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| basic | diluted | basic | diluted | |
| Group result attributable to shareholders of Fraport AG in € million |
450.6 | 450.6 | 393.2 | 393.2 |
| Weighted number of shares | 92,391,339 | 92,391,339 | 92,391,339 | 92,391,339 |
| Earnings per €10 share in € | 4.88 | 4.88 | 4.26 | 4.26 |
The basic earnings per share were calculated using the weighted average number of floating shares (the same number of shares as in the previous year), each corresponding to a €10 share of the capital stock. With a weighted average number of 92,391,339 shares in the 2024 fiscal year, the basic or diluted earnings per €10 share amounted to €4.88.