Latest news with #JensBischof
Reuters
11-08-2025
- Business
- Reuters
German aviation lobby warns of economic fallout as airlines withdraw over costs
BERLIN, Aug 11 (Reuters) - Airlines are withdrawing aircraft from Germany due to soaring state-imposed costs, the German Aviation Association (BDL) said on Monday, warning of significant economic fallout. The number of planes stationed in Germany has dropped from 190 in 2019 to 130 this year, resulting in an estimated loss of 10,000 jobs and 4 billion euros ($4.66 billion) in annual economic value added, BDL said. "Since 2019, state-imposed costs have more than doubled, and airlines are increasingly avoiding Germany," said BDL President Jens Bischof, urging the government to prioritise post-pandemic recovery in the aviation sector. The industry has criticised Berlin's decision to postpone a planned reduction in aviation tax, arguing that reversing the May 2024 hike would have signalled support for carriers. State levies, including taxes, air traffic control fees and security charges, are expected to rise by 1.1 billion to 4.4 billion euros this year, hampering recovery, said BDL. Passenger numbers rose just 3% in the first half of the year to 99.4 million, far below the 10% growth seen a year earlier. Germany ranks 28th out of 31 European countries in post-pandemic aviation recovery, with seat capacity at 87% of 2019 levels, compared with a European average of 104%. ($1 = 0.8583 euros)
Reuters
13-05-2025
- Business
- Reuters
Fraport's profit hit by higher wages, location costs in Frankfurt Airport
May 13 (Reuters) - Frankfurt Airport operator Fraport's ( opens new tab core earnings fell more than expected in the first quarter, hit by wage increases and high location costs in Germany's busiest airport. The German aviation industry is facing several challenges from worker protests to high taxes and fees. Those increased costs have prompted airlines - including low-cost carriers Ryanair (RYA.I), opens new tab, EasyJet (EZJ.L), opens new tab and Lufthansa's Eurowings - to cut services in the country. "The Fraport Group has made a cautious start to the 2025 fiscal year," it said in an earnings statement on Tuesday, confirming its outlook for the full year. Fraport's shares were down 2.6% as of 0753 GMT. The group, which also operates 30 airports outside of Germany, including seven in the U.S. and 14 in Greece, said its earnings were weighed down by personnel wage hikes in Frankfurt and an increase in German regulatory costs at the start of 2025. Jens Bischof, the president of the German Aviation Association, in February said that record-high location costs for airlines could threaten Germany's competitiveness in the sector. "Fraport cost pressures remain a headwind, particularly if passenger outlook weakens on slowing transatlantic and business travel out of Frankfurt," Jefferies analysts said in a research note. Jefferies had previously raised concerns about deteriorating demand for transatlantic travel, which it said contributes up to around 15% of Frankfurt Airport's total traffic. Global airlines are highly exposed to risks of slowing economic growth amid increased levels of geopolitical and macro concerns, including those related to U.S. President Donald Trump's trade policies. Fraport's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 16.5% to 177.5 million euros ($197.3 million) in the first quarter, missing an LSEG consensus of 186 million euros. In the same period last year, it had benefited from positive one-off effects such as a COVID-19 compensation payment in Greece and the earlier timing of Easter travel. ($1 = 0.8997 euros)
