FRAport Stock - Is an Investment Worthwhile?
Fraport, the operator of Frankfurt Airport and multiple international airports, has faced financial challenges in recent years. The company suspended dividend payments after the COVID-19 pandemic hit air travel demand. Now, as bookings recover, investors are watching for signs of a turnaround.
Fraport’s last dividend payment came in 2019, when shareholders received €2 per share with a yield of 2.85%. Since then, the pandemic has forced the company to halt payouts due to financial strain. A strike at Frankfurt Airport in February 2023 further pressured the stock, as flight cancellations and potential compensation claims weighed on investor confidence.
The company’s stock, listed on the Frankfurt Stock Exchange under the identification number 577330, could see a boost from a rebounding travel market. Growth in Asia, in particular, may drive demand. Additionally, Fraport’s investments in Greece—where it partners with TUI and the Copelouzos Group—could pay off if tourism shifts toward the region. Since 2017, these collaborations have aimed to strengthen Greek airport traffic and support Fraport’s financial performance.
However, risks remain. Government regulations, political instability in Greece, and heavy reliance on Frankfurt Airport and its partnership with Lufthansa could impact future earnings. Before the pandemic, Fraport worked closely with Greek authorities, airlines like Aegean, and tour operators to increase traffic, but recovery depends on broader economic conditions.
Fraport has signalled plans to resume dividends as travel demand improves and restrictions lift. The company’s diverse airport portfolio, spanning Greece, Peru, Turkey, and India, offers growth potential. Yet, its financial recovery will hinge on managing operational risks and capitalising on tourism trends.
