Travel Trends
Fraport significantly improves operating results in 2nd Quarter 2025
Fraport AG’s business performance picked up during the second quarter of 2025. Over the first six months of the year, around 77 million passengers traveled via Fraport’s Group airports worldwide – representing growth of 3.8 percent. Boosted by the increased traffic, after adjustments for revenues from construction and expansion measures (in line with IFRIC 12), revenue across the Group rose by 7.3 percent to 1.9 billion euros. The operating result (EBITDA) remained virtually stable, at 561.2 million euros (down 1.0 percent). The Group result (or net profit) was 98.6 million euros. This represented a reduction of 38.7 percent, attributable to non-recurring effects in the equivalent period in 2024 and during the reporting period.
Dr. Stefan Schulte, CEO of Fraport AG, said: “We’re on track to achieve our targets for the year. Following a lackluster first quarter – impacted by non-recurring effects from the previous year – we were able to improve our operating result significantly in the second quarter by a strong 8.2 percent. For the second half of 2025, we’re expecting growth across all of our airports, with our international portfolio performing more strongly than Frankfurt. As the German Federal Government is failing to implement its pledge under the coalition agreement to make urgent cuts to excessively high regulatory costs even in its 2026 budget, additional growth drivers for the German market are becoming an even more distant prospect. The Federal Government is passing up an opportunity to strengthen the competitiveness of our industry. The connectivity of German airports will reduce, to the detriment of leisure and business travelers. In contrast to Frankfurt, our international business will benefit particularly from the successful completion of expansions to our airports in Lima and Antalya.”
Key financial indicators in expected range for first half of 2025
Adjusting for revenues resulting from construction and expansion measures at Fraport’s international subsidiaries (in line with IFRIC 12), Group revenue increased by 7.3 percent to 1,896.3 million euros in the first half of 2025. At Frankfurt (FRA), the rise was driven by an increase in revenue from airport charges (up 31.9 million euros), ground services (up 32.2 million euros), and infrastructure fees (up 18.8 million euros). Outside Germany, traffic growth at Fraport’s Group airports in Greece (up 11.5 million euros) and Lima (up 10.6 million euros) made a major contribution to the overall result. The operating result (or EBITDA) reduced slightly, by 1.0 percent to 561.2 million euros. In 2024, the first half was impacted by non-recurring effects. In particular, these included a coronavirus compensatory payment for Fraport Greece (28.0 million euros) and compensation of 9.1 million euros for damage caused by flooding at the airport in Porto Alegre (POA).
When considering the second quarter of 2025 on its own, EBITDA increased, rising by 8.2 percent to 383.7 million euros in the three months from April to June. There was also significantly improved performance for free cash flow in the second quarter. In the first half as a whole, free cash flow was -324.8 million euros. However, in the second quarter of 2025, the figure reached positive territory, at 28.5 million euros (Q2/2024: -226.9 million euros). The completion of major investment projects for the expansion of Fraport’s airports in Lima and Antalya demonstrated the first positive impacts.
The Group result for the first half of 2025 was 98.6 million euros, compared to 160.8 million euros in H1/2024. The decline was primarily attributable to previously mentioned non-recurring events that positively impacted the prior-year period, as well as adverse effects from currency exchange rates and the recognition of deferred taxes in the reporting period. Undiluted earnings per share fell during the first six months of the year, to 1.03 euros (H1/2024: 1.63 euros).
Fraport’s Group airports outside Germany see stronger growth
Passenger growth figures across the Group’s airports were generally positive in the first half of 2025. With some 29.1 million passengers, Frankfurt Airport (FRA) saw an increase of 1.4 percent. In the second quarter, passenger numbers at Frankfurt rose by 3.1 percent. This enabled Germany’s largest airport to make up the slight reduction in passenger numbers (-0.9 percent) that it experienced during the first three months of the year. When adding traffic figures for Fraport’s international subsidiary airports – which largely outperformed FRA – the Group as a whole recorded a 3.8 percent increase in passenger numbers for the first half of 2025, to around 77 million travelers.
Outlook for the 2025 fiscal year
Fraport’s executive board views the trend in the first quarter of 2025 as positive and is confirming forecasts for the current fiscal year. The airport operator expects passenger numbers at FRA to reach up to 64 million. A moderate increase in the Group EBITDA is forecast. Expectations for the Group profit remain in a stable to slightly falling range.
The article Fraport significantly improves operating results in 2nd Quarter 2025 first appeared in TravelDailyNews International.
Travel Trends
Las Vegas Faces Sharp Decline in Visitor Numbers as Inflation, Rising Costs and Global Economic Pressures Reshape Tourism Trends: New Update You Need to Know
Published on
August 10, 2025 |
Las Vegas is facing a sharp decline in visitor numbers, driven by a combination of rising inflation, increasing travel costs, and broader global economic pressures. The city’s traditionally affordable attractions have become pricier, making it less accessible for many tourists. International visitors, especially from countries like Canada, are staying away due to economic and political factors. Domestic travelers, too, are tightening their budgets, opting for more cost-effective destinations. As a result, tourism trends are shifting, with Las Vegas seeing fewer visitors and its tourism model being reshaped by these evolving economic conditions.
While summer is typically a slower season for Las Vegas due to the extreme heat, the current decline seems to go beyond the usual seasonal dip. Fewer large conventions were held in June than in previous years, and experts suggest that broader economic factors—such as inflation, trade disruptions, and evolving consumer spending behaviors—are contributing to the downturn in tourism to the U.S.
Historically, Las Vegas has mirrored national economic trends, and this recent tourism decline may signal the impact of larger economic shifts. Both hotel occupancy rates and convention attendance showed signs of weakening in June, underscoring the growing influence of economic uncertainty on the travel industry.
Further evidence of the slowdown can be seen in the numbers from Harry Reid International Airport, which recorded a drop of roughly 318,000 passengers in June. Traffic along Interstate 15, the primary route connecting California and Nevada, also declined by 4.3%, signaling a broader dip in visitor numbers.
Despite these challenges, Las Vegas remains one of the country’s top travel destinations. The city still welcomed 3.1 million visitors in June, and convention attendance year-to-date remains strong compared to 2024. Additionally, gaming revenues saw a slight uptick, indicating that while tourism has slowed, the city’s entertainment industry is holding steady.
Challenges with International Tourism
A significant factor behind the drop in tourism is a decline in international visitors, particularly from Canada. Canadians make up a substantial portion of Las Vegas’ international tourism, and many have canceled their trips to the U.S. in response to economic and political tensions. The implementation of a 35% tariff on Canadian goods, coupled with political rhetoric surrounding U.S.-Canada relations, has led many Canadians to rethink their travel plans.
This reduction in international travel extends beyond Las Vegas, affecting other major U.S. tourist destinations such as New York and California. According to the World Travel & Tourism Council, the U.S. could lose $12.5 billion in international tourism spending this year, signaling that the broader impact of these global shifts is being felt across the country.
Inflation and Rising Costs Affect Domestic Tourism
In addition to the international decline, domestic tourism is also being influenced by inflation and rising living costs. Although more Americans are planning vacations this year compared to previous years, many are opting for less expensive trips due to higher travel costs. A survey by Deloitte’s ConsumerSignals found that while travel is on the rise, more Americans are choosing to trim their travel budgets because of inflation.
Las Vegas, traditionally seen as a budget-friendly destination, has become more costly in recent years. Rising expenses in food, entertainment, and labor are pushing prices higher, which has led some travelers to seek more affordable vacation spots. As inflation continues to strain household budgets, many tourists are looking for better value and more cost-effective alternatives.
Las Vegas is experiencing a sharp decline in visitor numbers due to rising inflation, increased travel costs, and global economic pressures, reshaping the city’s tourism trends as travelers adjust their spending.
What’s Next for Las Vegas Tourism?
Despite the current decline in visitor numbers, experts are hopeful about Las Vegas’ tourism future. The city is gearing up for major upcoming events, including high-profile concerts, the Formula 1 race, and the 2026 FIFA World Cup. These large-scale events are expected to bring substantial crowds, potentially reversing the recent drop in tourism.
In conclusion, Las Vegas is facing several challenges, including economic uncertainty, rising costs, and shifting international and domestic travel trends. However, with a resilient entertainment industry and major events on the horizon, the city remains optimistic that tourism will rebound. Only time will tell if this decline represents a temporary setback or if Las Vegas is experiencing a longer-term shift in its tourism landscape.
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