Catch up on CAPA’s exclusive Market Analysis pieces

    Each week, CAPA – Centre for Aviation, produces informative, thought provoking and detailed market analysis of the aviation industry. With supporting data included in every analysis, CAPA provides unrivalled and unparalleled intelligence.


    Fraport’s global airports: solid growth and positive financial results

    Fraport’s financial reports for the last three months and six months reveal that revenue and EBITDA growth has come in the main from its foreign investments and management contracts. Growth was recorded across all fields of activity with the exception of real estate (stable).

    The airports that are included in Fraport’s global portfolio of subsidiaries and other investments number 26 airports on three continents.

    Results data are notable for a 44% revenue increase in International Activities and Services and a 16.3% increase in EBITDA in that segment – both well ahead of other segments, with the exception of the EBITDA increase in Ground Handling.

    It would not be surprising to see Fraport’s financial results being driven continuously by its investments in other airports while the anchor airport, Frankfurt International, remains capacity constrained and requires ever-increasing capital expenditure.

    This report looks at those airports, some of which are part of subsidiaries, the investments Fraport is making at them, and at whether they are a good fit with the main company.

    In almost every case they are.

    To read on, visit Fraport’s global airports: solid growth and positive financial results


    Airline traffic between Canada and Asia is shifting: new bilaterals?

    Currently, market dynamics between Canada and Asia are being pressured by geopolitical events and trade spats, and airlines serving the market continue to adjust their capacity as demand softens from North America to China and Hong Kong.

    But over the long term robust air service from Canada to Asia remains a priority, given that China remains one of the fastest growing markets for air travel and will overtake the US as the world’s largest market in the mid-2020s.

    Arguably, some forward thinking is necessary in order for the market from Canada to Asia to reach its full potential, which could necessitate some countries re-examining their approach in forging air service agreements as Asia’s traffic strength continues to build.

    To read on, visit Airline traffic between Canada and Asia is shifting: new bilaterals?


    Thomas Cook liquidation: tour operators, airlines and lessors affected

    Thomas Cook Group’s entry into liquidation on 23-Sep-2019 is a sad end for the business that started in 1841, invented the package holiday, and became one of the most enduring brands in the travel industry.

    The group’s UK airline, Thomas Cook Airlines, ceased operations immediately, as did its Scandinavian airline subsidiary (but the Scandinavian airline’s website subsequently indicated that flights were to resume on 24-Sep-2019).

    However, together with two other non-UK charter focused airlines (Thomas Cook Airlines Balearics and Thomas Cook Aviation), the group’s German airline Condor is still operating its own flights (but cannot board passengers that have booked a package holiday through Thomas Cook Group companies). Condor has applied for a bridging loan guaranteed by the German government.

    Headlines are plentiful about the need to repatriate 150,000 UK citizens that would otherwise be stranded on holiday in locations across Europe, North Africa and the Americas. However, the impact on the tour operator, airline and lessor industries and on airports will be felt long after that operation – carried out by the UK Civil Aviation Authority – has been completed.

    The situation is fluid and will continue to change, but this report gives CAPA’s initial analysis of the possible impact of Thomas Cook Group’s liquidation.

    To read on, visit Thomas Cook liquidation: tour operators, airlines and lessors affected


    Airport EBITDA/ EBITDA Margins 1H2019 – many factors in play

    Airports across the world have been revealing their 1H2019 and 2Q2019 financial results recently as the air transport business again teeters on the edge of one its difficult periods.

    Oil prices are going up, trade wars persist and cargo volume and, in some cases, passenger numbers are falling.

    The accounting measure ‘EBITDA’ has long been used to gauge quickly a measure of how well or badly a company is performing at the operating level, along with the EBITDA MARGIN, which contrasts revenues and earnings.

    This report looks at a variety of financial results, from Europe, Australasia and Latin America that have been released in the last month, and specifically at those two measures.

    To read on, visit Airport EBITDA/ EBITDA Margins 1H2019 – many factors in play