BERLIN (dpa-AFX) - Fraport AG (FRA.DE, 0O1R.L, FPRUF.PK) Tuesday proposed to increase in dividend to 1.50 euros, from 1.35 euros last year.
Looking ahead, Fraport expects passenger traffic to grow by two to four percent, while revenue is forecast to rise up to 2.9 billion euros. The Group net profit is expected to reach a range between 310 million and 350 million euros, up from the adjusted Group result of almost 300 million euros achieved last year.
The worldwide airport services company expects its core hub business to be complemented by growing low cost segment. At the annual general meeting, the company said its traffic slowdown in the summer months at the Frankfurt airport base could be entirely offset by strong passenger figures in 2016.
Chairman and CEO Stefan Schulte said, 'Customers today expect low-cost flight offers. The low-cost segment already accounts for more than 40 percent of Europe's continental air traffic. Moreover, we have been losing significant traffic share to neighboring competitor airports offering low-cost airline services. Hence, a major aviation gateway like Frankfurt cannot continue to ignore this market trend over the long run.'
Fraport expects the investment volume for building the new pier to range between about 100 million and 200 million euros.
With the future Terminal 3, Fraport intends to offer a premium product with a clear focus on transfer traffic and network carriers. It also plans additional investments at FRA's two existing terminals.
Fraport will be managing 14 Greek regional airports, as well as the expected operational takeover of two airports in Brazil.
Copyright RTT News/dpa-AFX