Q2 2026 Fraport Frankfurt Airport Services Worldwide AG Earnings Call - Q&A

Operator: Good day. Welcome to the Fraport Q2 2026 question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference call is being recorded. I would now like to hand over to Florian Fuchs, SVP, Head of Finance and IR. Please go ahead.

Speaker #1: is raised. To answer your question, please press *11 again. Please be advised that today's conference call is being recorded. I will now like to hand over to Florian Fuchs, SVP Head of Finance and IR. ahead.

Speaker #1: IR. Please go

Florian Fuchs: Yes. Hello, everybody. Welcome to Frankfurt to our Q2 question and answer session. The presentation got released this morning at 7:00 AM CET and is available on the web. Right now, as said before, we will have the question and answer session. With me at the table, we got Dr. Matthias Zieschang, our CFO, and keeping with the previous quarters and previous releases, please do keep our cautionary language in mind when it comes to forward-looking statements. Having said this, we'd like to hand over back to the operator to start with the Q&A session now.

Speaker #2: everybody, and welcome to Frankfurt to and answer session. The presentation got released this morning at 7:00 AM CET, and is available on the web, and right now, as said before, we do have the question and answer session.

Speaker #2: With me at the table, we got Dr. Matthias Zieschang, our CFO, and keeping with the previous quarters and previous releases, please do keep our cautionary language in mind when it comes to forward-looking statements.

Speaker #2: Having said this, we'd like to hand over back to the operator to start with the Q&A session now.

Speaker #1: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To answer your question, please press *11 again.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take our first question. From the line of Carlos Caburrasi from Kepler Cheuvreux. Please go ahead.

Speaker #1: take our first question. From We will now the line of Carlos Caporazzi from Kepler Severe, please go ahead.

Speaker #2: Okay, thank you. Hi Matthias,

Carlos Caburrasi: Okay. Thank you. Hi, Matthias. Hi, Florian. Thank you for.

Speaker #3: hi Florian. Thank you for. For taking my question. I'll go ahead with just two questions on my side. First, I wanted to focus on the financial results.

Matthias Zieschang: Hello

Carlos Caburrasi: taking my questions. I'll go ahead with just two questions on my side. First, I wanted to focus on the financial results. In Q2, the net financial expense figure, and here excluding joint ventures, was around EUR 100 million. Should we expect this same level in the coming quarters, or has this been any kind of one-off? Second, I was wondering if you could provide some visibility on CapEx. The reduction appears to be progressing a bit more slowly than anticipated. How confident are you in reaching the EUR 900 million full-year target? Thank you.

Speaker #3: In Q2, the net financial expense figure, and here excluding joint ventures, was around $100 million. Should we expect this same level in the coming quarters, or has there been any kind of one-off?

Speaker #3: And second, I was wondering if you could provide some visibility on capex. I mean, the reduction appears to be progressing a bit more slowly than anticipated, so how confident are you in reaching the $900 million full-year target?

Speaker #3: Thank you.

Speaker #2: Yeah, starting with the last topic, capex, we are absolutely confident to end up with $900 million. You mentioned the run rate in the first six months, which is, in comparison to further years a little bit higher, but this has to do with that, on one side, now we are closing all open contracts regarding Terminal 3, so this is a ramp-down during the year.

Matthias Zieschang: Starting with the last topic, CapEx. We are absolutely confident to end up with EUR 900 million. You mentioned the run rate in H1, which is in comparison to further years, a little bit higher, but this has to do that on one side now we are closing all open contracts regarding Terminal 3. This is a ramp down during the year. Second, we had some refurbishment works at our runway, on the southern runway in our parallel system. Here we had a good outflow for this refurbishment, and that's the reason why in H1, CapEx has been relatively high, but this will be fully compensated as planned in H2, so that we are absolutely confident to end up with a total CapEx number of EUR 900 million. First part was regarding?

Speaker #2: And second, we had some refurbishment works at our runway on the southern runway in our parallel system, and here we had a good outflow for these refurbishments, and that's the reason why in the first six months, capex has been relatively high, but this will be fully compensated as planned, and the second half, so that we are absolutely confident to end up with a total capex number of $900 million.

Speaker #2: First part was regarding the interest result Q2. Interest results yeah, you have to see that underlying, we have the expenses for our total indebtedness.

Carlos Caburrasi: The interest result Q2.

Matthias Zieschang: Interest result.

Carlos Caburrasi: Explaining this full. Yeah.

Matthias Zieschang: Yeah. You have to see that underlying, we have the expenses for our total indebtedness, the average rate of interest for the total debt, there will be no change, perhaps during the year, an increase from 3.4% to 3.6% at the end of the year. This is a minimal increase on one side. On the other side, we had this special effect that we cannot any longer capitalize interest expenses for the construction expenses regarding Terminal 3. This was a step up. Now we have a new balanced level for the next couple of quarters.

Speaker #2: You know, the average rate of interest for the total debt, that will be no change perhaps during the year and increase from 3.4 to 3.6 percent at the end of the year.

Speaker #2: This is minimal increase. On one side, on the other side, we had this special effect that we cannot any longer capitalize interest expenses for the construction expenses regarding Terminal 3, so this was a step-up.

Speaker #2: And now we have a new balanced level for the next couple of quarters.

Speaker #3: Okay, thank you.

Carlos Caburrasi: Okay. Thank you.

Speaker #1: Thank you. We will now take the next question. From the line of Tobias Fromm from Bernstein, please go ahead.

Operator: Thank you. We will now take the next question from the line of Tobias Fromme from Bernstein. Please go ahead.

Speaker #4: Hello. Thanks very much for taking my question. I had one on retail. Shopping and service spend per pax dropped by 6 percent in Q2, and by 4 percent in Q1, while advertising per pax increased by 25 percent in Q1.

Tobias Fromme: Hello. Thanks very much for taking my question. I had one on retail. Shopping and service spend per pax dropped by 6% in Q2 and by 4% in Q1, while advertising per pax increased by 25% in Q1 and by another 5% in Q2. I was just wondering, when should we expect the inflection point for the shopping and service spend per pax to grow again? Is that with the return of the Middle Eastern travelers or a change in exchange rates? What do you expect over the next two quarters? Lastly, how resilient is the increase in advertisement per pax? Thank you.

Speaker #4: And by another 5 percent in Q2. I was just wondering, when should we expect the inflection point for the shopping and service spend per pax to grow again?

Speaker #4: Is that with the return of the Middle Eastern travelers, or a change in exchange rates? And what do you expect over the next two quarters?

Speaker #4: And then lastly, how resilient is the increase in advertisement per pax? Thank you.

Speaker #2: Yeah, first of all, spend per pax you mentioned already the elements working in favor of us or working against us. So on one side, we had the positive impact from Terminal 3, where as of today, the increase is about 30 percent spend per pax.

Matthias Zieschang: First of all, spend per pax, you mentioned already the elements working in favor of us or working against us. On one side, we had the positive impact from Terminal 3, where as of today, the increase is about 30% spend per pax. Of course, especially driven also by an increase of advertisement proceeds. On the other side, we had a significant loss of Middle East passengers with deep pockets and also willingness to spend a lot of money. Looking forward, first of all, we see and expect a further improvement of the retail business inside Terminal 3 on one side, and this will be supported by the coming back of Middle East passengers, so that we are also confident that looking forward, the spend per pax will go up based on these two factors.

Speaker #2: Of course, especially driven also by an increase of advertisement proceeds. On the other side, we had a significant loss of Middle East passengers with deep pockets, and also willingness to spend a lot of money.

Speaker #2: And looking forward, first of all, we see and expect a further improvement of the retail business inside Terminal 3 on one side, and this will be supported by the coming back of Middle East passengers.

Speaker #2: So, we are also confident that, looking forward, the spend per pax will go up based on these two factors. And regarding the sustainability of advertisement, we see a huge demand for billboards, so to say, in Terminal 3.

Matthias Zieschang: Regarding sustainability of advertisement, we see a huge demand for billboards, so to say, in Terminal 3, and a very good spending behavior of companies or banks. Given an increase in demand, we are looking where we can install further billboards inside this terminal because we have an excess of demand. Based on this, we are convinced that this is a sustainable trend.

Speaker #2: And a very good spending behavior of companies or banks. And even an increasing demand, we are looking where we can install further billboards inside this terminal because we have an excess of demand.

Speaker #2: And based on this, we are convinced that this is a sustainable trend.

Tobias Fromme: Great. Thank you.

Speaker #4: Okay, thank you.

Speaker #1: Thank you. Our next question comes from the line of Christian Nedelcu from UBS. Please go ahead.

Operator: Thank you. Our next question comes from the line of Cristian Nedelcu from UBS. Please go ahead.

Speaker #4: Hi, thank you very much. Could I please ask first on Frankfurt traffic for the winter? Some of the data on airline seat capacity is showing Lufthansa seat capacity in Frankfurt in Q4 down around 7 percent year over year.

Cristian Nedelcu: Hi. Thank you very much. Could I please ask first on Frankfurt traffic for the winter? Some of the data on airline seat capacity showing Lufthansa seat capacity in Frankfurt in Q4 down around 7% year over year. I'm not sure if this data is accurate or if you can make any comments on what you're seeing or expecting on your side. Just on the free cash flow, could we kindly ask you to comment a bit? You've reiterated the guidance on the free cash flow this year. Is there a range we should have in mind, like low triple digits? Is that a EUR 100 to 200 million range or a bit more? Any color at this stage as we are halfway through the year?

Speaker #4: I'm not sure if this data is accurate or if you can make any comments on what you're seeing or expecting on your side. Secondly, just on the free cash flow, could we kindly ask you to comment a bit?

Speaker #4: You've reiterated the guidance on the free cash flow this year. Is there a range we should have in mind, like low triple digits? Is that a 100 to 200 million range, or a bit more, or any color at this stage as we are halfway through the year?

Speaker #4: And if not so much trouble, could you remind us the building blocks next year? The lower capex, the Antalya dividend, and other building blocks.

Cristian Nedelcu: If not too much trouble, could you remind us the building blocks next year, the lower CapEx, the Antalya dividend and other building blocks? The last one, if you allow me, there's a bunch of international tenders that we see in the press, at least there is speculation around them. I think in the past you flagged potentially Egypt or Greece regional airports may be something of interest. I don't know if there's any update there, if those projects could still be of interest or if there's any timeline there that we should keep in mind to see progress on those tenders. Thank you.

Speaker #4: And the last one, if you allow me, there's a bunch of international tenders that we see in the press, at least, or speculation around them.

Speaker #4: I don't know if I think in the past you flagged potentially Egypt or Greece regional airports, maybe something of interest. I don't know if there's any update there, if those projects could still be of interest, or if there's any timeline there that we should keep in mind to see progress on those tenders.

Speaker #4: Thank you.

Speaker #2: Yeah, thank you for your questions. Starting with your last topic, M&A activities, we as you mentioned in the market, it could be that Egyptian airports are coming, or these regional airports in Greece.

Matthias Zieschang: Yeah. Thank you for your questions. Starting with your last topic, M&A activities. As you mentioned in the market, it could be that Egyptian airports are coming or these regional airports in Greece. We are going to look at both opportunities, whether they are interesting for us or not. We are doing a deep analysis. After this analysis, if they are offered, we have to decide to go or not to go. In principle, we are looking at these airports, and we have to see whether this could be of interest to us or not. The rest is not relevant for us because we have our balance sheets and we have our clear targets, and we have to bring down indebtedness, our firepower is limited.

Speaker #2: So we are going to look at both opportunities, whether they are interesting for us or not. And we are doing a deep analysis and after this analysis, then if they are offered, then we have to decide to go or not to go.

Speaker #2: But in principle, we are looking at these airports and then we have to see whether this could be of interest for us or not.

Speaker #2: The rest is not relevant for us because, you know, we have our balance sheet and we have our key targets and we have to bring down indebtedness so our firepower is limited.

Speaker #2: So regarding free cash flow, so the free cash flow development in Q2 was a little bit disappointing. This has to do with temporarily working capital, effects, which will level out later on during this year.

Matthias Zieschang: Regarding free cash flow, the free cash flow development in Q2 was a little bit disappointing. This has to do with temporarily working capital effects, which will level out later on during this year. This was, so to say, up and down like a roller coaster, and especially in Q2. We expect the full compensation in the rest of the year. With other words, our metric and our calculation for the free cash flow guidance for this year is robust. The only impact comes from lower traffic at Frankfurt and via lower traffic, we have a little bit of reduced EBITDA expectation and this of course translates also into free cash flow. All the other, what you mentioned, building blocks are stable, are robust, are sustainable.

Speaker #2: So this was, so to say, an up and down, like a roller coaster. And especially in Q2, so we expect the full compensation in the rest of the year.

Speaker #2: So with other words, our metric and our calculation for the free cash flow guidance for this year is robust. The only impact comes from lower traffic at Frankfurt and why are lower traffic?

Speaker #2: We have a little bit of reduced ABDA expectation, and this, of course, translates also into free cash flow. But all the other what you mentioned, building blocks are stable, are robust, are sustainable.

Speaker #2: So there's no change compared to this, what we said at the beginning of the year, except the weaker traffic at Frankfurt airport and therefore a little bit reduced ABDA expectation.

Matthias Zieschang: There's no change compared to this what we said at the beginning of the year, except weaker traffic at Frankfurt Airport and therefore a little bit reduced EBITDA expectation. CapEx is, as I mentioned, this year is stable with EUR 900 million and also going one year forward. Next year we always said it's about EUR 700 million, there's no change. Nothing will be different with this what we said in the beginning of the year. Traffic, when you look on our international assets, traffic is very solid. In average is absolutely in line with our planning and also looking forward, we assume that this will continue this positive performance. Frankfurt, we are weaker than expected. We have on one side, the Lufthansa running flat or even with reduced seat capacities in the market.

Speaker #2: Capex is, as I mentioned, for this year, is stable with 900 million, and also going one year forward, next year, we always said it's about 700 million.

Speaker #2: So there is no change. So nothing is will be different to this, what we said in the beginning of the year. Traffic, when you look on our international assets, traffic is very solid.

Speaker #2: In average, it's absolutely in line with our planning. And also looking forward, we assume that this will continue, this positive performance. Frankfurt, we are weaker than expected.

Speaker #2: And we have on one side the Lufthansa running flat or even with reduced seat capacities in the market. On the other side, we see Condor delivering what they have guided in the beginning of the year, but of course, due to the size of Condor, this cannot fully compensate the reduction or the weakness of Lufthansa.

Matthias Zieschang: On the other side, we see Condor delivering what they have guided in the beginning of the year. Due to the size of Condor, this cannot fully compensate the reduction or the weakness of Lufthansa. That for the total year, we again see a number which is on the level of the previous year. More interested is what will happen in 2027. Here we see then from today onward, another delivery of, I think about 10 Dreamliners coming to Frankfurt, to Lufthansa. We think that this will increase the seat capacity. Condor is continuing with their growth path. They are, I think we'll see six, is correct? Six additional A330neos.

Speaker #2: So, for the total year, we again see a number which is on the level of the previous year. More interesting is what will happen in 2027 here.

Speaker #2: We see then from today onward, another delivery of, I think, about 10 Dreamliners coming to Frankfurt to Lufthansa. And we think that this will increase then the seat capacity Condor has continuing with their growth path.

Speaker #2: They are I think will see 6, correct, 6 additional A330neos?

Florian Fuchs: Yeah, I think they leased right now four new, haven't decided yet how many will come, but also A330s will come to the-

Speaker #1: think they leased right now 4 new and decided yet how many will come. But also A330s will come to the.

Speaker #2: So 4 to 6 long-haul aircraft, and so that let me say for 2027, this is not a guidance from today because we have to see what will happen in the next couple of months.

Matthias Zieschang: Four to six long-haul aircraft. Let me say for 2027, this is not a guidance from today because we have to see what will happen in the next couple of months. From today's perspective, we see this number of passengers in 2027, what we saw in the beginning of this year for 2026. Yep. I think these are the questions or the answers.

Speaker #2: But from today's perspective, we see the number of passengers in 2027 that we saw at the beginning of this year for 2026. Yeah.

Speaker #2: Yeah, I think this is another question or the answers.

Speaker #4: Thank you very much.

Cristian Nedelcu: Thank you very much.

Speaker #5: Thank you. I will next question. It's from the line of Graham Hunt from Jefferies. Please go ahead.

Operator: Thank you. Our next question is from the line of Graham Hunt from Jefferies. Please go ahead.

Speaker #6: Hi Matthias, hi Florian. Thanks very much for the questions. Maybe just sticking with the free cash flow and CapEx theme. I think, first question, you were guiding to around €200 million—I think that had been mentioned at the beginning of the year.

Graham Hunt: Hi, Matthias. Hi, Florian. Thanks very much for the questions. Maybe just sticking with the free cash flow and CapEx theme. First question, I think you were guiding to around EUR 200 million, I think that had been mentioned at the beginning of the year. Maybe you can just help us with the building blocks. You have the loss of EBITDA that you mentioned, the one-off tax charges. Are you sort of expecting consensus to come down closer to EUR 100 million now? That's question one. Question two, just on, I think you had a sort of soft target of coming below five times net debt EBITDA by 2027. Do you still see that under current conditions as achievable? Appreciate that it's difficult visibility-wise in the current market, as it stands today, does that still seem like a reasonable assumption?

Speaker #6: Maybe you can just help us with the building blocks. So you have the then the loss of EBITDA that you mentioned, the one-off tax charges.

Speaker #6: Are you sort of expecting consensus to come down closer to 100 million now? That's question one. Question two, just on your I think you had a sort of soft target of coming below five times net debt EBITDA by 2027.

Speaker #6: Do you still see that under current conditions as achievable? Appreciate that it's difficult visibility-wise in the current market, but as it stands today, does that still seem like a reasonable assumption?

Speaker #6: And then last question, just a quick one, I guess, on ground handling. Any development there around Lufthansa and the contract? Thank you.

Graham Hunt: Last question, just a quick one, I guess, on ground handling, any development there, around Lufthansa and the contract. Thank you.

Speaker #2: Yeah, thank you for your questions. Building blocks of free cash flow calculation, what is stable? Stable is the number of 900 million regarding capex and no change.

Matthias Zieschang: Yeah. Thank you for your questions. Building blocks of free cash flow calculation. What is stable? Stable is the number of EUR 900 million regarding CapEx, so no change. Also, interest expenses, on a net basis, EUR 400 million net result. About EUR 100 million tax cash out. As always, no change. On the other side, we have dividend proceeds primarily from Antalya, fully compensated on the other side by fixed concession payments for our assets in the international portfolio. You can say everything is stable except EBITDA, where we coming with our guidance saying up to EUR 1.5 billion internally, we had a clear target to meet the EUR 1.5 billion based on 65 to 66 million passengers at Frankfurt Airport.

Speaker #2: Also, interest expenses on a net basis, 400 million net results. 100 about 100 million tax cash out. So as always, no change. And on the other side, we have dividend proceeds primarily from Antalya.

Speaker #2: a. Fully compensated. On the other side, by fixed concession payments for our assets in the international portfolio. So you can say everything is stable except ABDA, where we are coming with our guidance, saying up to €1.5 billion. Internally, we had a clear target to meet the €1.5 billion.

Speaker #2: Based on 65 to 60 million passengers at Frankfurt airport. Now, if you would end up with 63, so we if you would go in the middle of the range, we are going to lose 2.5 million.

Matthias Zieschang: Now, if you would end up with 63, so if you would go in the middle of the range, we are going to lose EUR 2.5 million, times EUR 15 per passenger. We have, on the aviation side, a loss of EUR 40 million, partly compensated by perhaps a better performance on the international side, but just a party compensation so that the final EBITDA on a group level will be clearly above previous year EBITDA level, but it will be below EUR 1.5 billion. This difference, let me say, due to the traffic weakness of Frankfurt Airport, is a negative impact at the end of the day of the absolute free cash flow number. You're talking about a double-digit million amount. In other words, all the building blocks, what you mentioned, are stable compared. This was what we guided in the beginning of the year.

Speaker #2: Times 15 Europe per passenger. So we have on the aviation side a loss of 40 million. Partly compensated by perhaps a better performance on the international side, but just a partly compensation.

Speaker #2: So that the final ABDA on a group level will be clearly above previous year ABDA level, but it will be below 1.5 billion. So on this difference, let me say, due to the traffic weakness of Frankfurt airport is a negative impact at the end of the day of the absolute free cash flow number, but it's you're talking about a double digit million amount.

Speaker #2: So with other words, all the building blocks, what you mentioned, are stable compared to this, what we guided in the beginning of the year.

Matthias Zieschang: A net debt to EBITDA number. Yeah. It will be around five times whether it's 4.9 or 5.1 or 5.2, we have to see at the end of the day. I think we have to see how we end up with the net indebtedness at the end of this year, going forward on one side. What will be the final EBITDA guidance for 2027, that's for sure. This depends, I think we will not see any surprise on the international side, a continuation of this very good trend and the performance. Let me say, the question mark and the whole calculation will be traffic recovery at Frankfurt Airport in 2027. You know the metrics, EUR 15 just in aviation plus a little bit coming from retail if we would have more passengers.

Speaker #2: Net debt to EBITDA number—yeah, it will be around five times, whether it's 4.9 or 5.1 or 5.2; we have to see. At the end of the day, I think we have to see how we end up with the net indebtedness at the end of this year.

Speaker #2: And then going forward, on one side, and what will be the final ABDA guidance for 2027. That's for sure. And this depends I think we don't we will not see any surprise on the international side, a continuation of this very good trend and the performance and let me say the question mark and the whole calculation will be traffic recovery at Frankfurt airport in 2027.

Speaker #2: And you know the matrix. 15 euro just in aviation plus a little bit coming from retail. If you would have more passengers this is the swing influencing ABDA and why ABDA, of course, and net debt to ABDA.

Matthias Zieschang: This is the swing influencing EBITDA and via EBITDA, of course, and net debt to EBITDA. Ground handling, nothing new. Our contract is on the table. It's a fair offer. Based on the approach that all our cost items, including cost of capital, must be covered and it's up to Lufthansa now. Nothing new.

Speaker #2: Ground handling, nothing new. Our contract is on the table. It's a fair offer. So we based on the approach that's all our cost items including cost of capital must be covered.

Speaker #2: And it's up to Lufthansa now. So nothing new.

Speaker #6: Thanks. Maybe just very quick follow-up. Just as you mentioned on the net debt, I suppose it was associated with a potential increase in dividend payout.

Graham Hunt: Thanks. Maybe just very quick follow-up. Just as you mentioned on the net debt, I suppose it was associated with a potential increase in dividend payout. Maybe the question was more, is that still quite a hard limit for you, or it's more of a take into consideration everything in the round?

Speaker #6: So maybe the question was more, is that still quite a hard limit for you, or is it more taking into consideration everything in the round?

Speaker #2: No. Let me say one thing: it is absolutely clear that next year, we are paying one euro for this year. This is a given.

Matthias Zieschang: No. Let me say, one thing is absolutely clear. Next year we are paying EUR 1 for this year. This is a given, will not be discussed. The question is 1 year later on, and this is not exactly hard linked to whether it's 4.95 or 5.07. At the end of the day, we are sitting together in the management team and with the supervisory board and our main shareholders, we are discussing this topic. With other words, it can even be that we are going to kick in the new regime, even if, for example, net debt to EBITDA would be, give a number, 5.1. Thank you.

Speaker #2: And it will not be discussed. And the question is one year later on. And this is not exactly hard-linked to whether it's 4.95 or 5.07.

Speaker #2: At the end of the day, we are sitting together in the management team, and with the supervisor report and our main shareholders, we are discussing this topic.

Speaker #2: So with other words, it can even be that we are going to kick in the new regime even if, for example, net debt to ABDA would be give the number 5.1.

Speaker #2: Yeah.

Speaker #6: Thank you.

Speaker #5: Thank you. We will now take the next question. From the line of Harishana Ramamurthy from Deutsche Bank, please go ahead.

Operator: Thank you. We will now take the next question from the line of Harishankar Ramamoorthy from Deutsche Bank. Please go ahead.

Speaker #4: Yeah, hi. Good afternoon, everyone. Thanks for taking my questions. Maybe the first one on capex. If I look at the cash flows for six months so far, believe you've spent around 650 million euros.

Hari Chandramouli: Hi. Good afternoon, everyone. Thanks for taking my questions. Maybe the first one on CapEx. If I look at the cash flows for H1 so far, believe you've spent around EUR 650 million. The like-for-like number for the full year guide is the EUR 900 million plus the EUR 100 million for IFRS and others, so EUR 1 billion. Could you help me understand what is changing in H2 for you to be hitting the EUR 350 million level run rate rather than EUR 650 million for H1? Secondly, maybe on the wage costs in aviation, I think it's around 11% increase, there's not much increase in headcount. What is this increase driven by, given I think the wage inflation is quite low? If there are any one-offs here, how should we think about how personnel costs move into 2027? Thanks.

Speaker #4: Now, maybe the like-for-like number for the full-year guide is the 900 million, plus the 100 million for IFRS and others. So 1 billion. Could you help me understand what is changing in H2 for you to be hitting the 350 million level run rate rather than 650 million for H1?

Speaker #4: Then secondly, maybe on the wage costs, in aviation, I think it's around 11% increase. But there's not much increase in headcount. So what does this increase driven by, given I think the wage inflation is quite low?

Speaker #4: And if there are any one-offs here, how should we think about how personnel costs move into 2027? Thanks.

Speaker #2: Yeah, regarding wage costs, when you look at the percentage, it's high. Especially in aviation here, we have three elements which I would like to highlight.

Matthias Zieschang: With regarding wage costs, when you look on the percentage, it's high, especially in aviation. Here we have three elements which I would like to highlight. We had in so far a one-off that we had to increase provision from bonus payments for the whole management team, which was significant in Q2, so one-off. We had higher as normal also expenses from partial retirement or early retirement, we had also some structural effects by the tariff agreement, which is sustainable of course, because when you look on the average, the tariff agreement was okay. With in so far a bias that the low income people are receiving relatively more than the high income people. Here there was some impact in aviation, the main elements are one-off is again, the provisions for bonus payments one side and partial and early retirement on the other side.

Speaker #2: We had, insofar, one-off that we had to increase provision for bonus payments for the whole management team, which was significant in Q2.

Speaker #2: So one-off. Second, we had higher as normal also expenses for partial retirement or early retirement. And we had also some structural effects by the tariff agreement, which is sustainable, of course, because when you look on the average, the tariff agreement was okay.

Speaker #2: But with in so far bias that the low-income people are receiving relatively more than the high-income people. And here there was some impact in aviation.

Speaker #2: But the main elements are one-off is again the provisions for bonus payments, one side, and partial and early retirement on the other side. Looking forward, this is more interesting we are assuming that this will not continue.

Matthias Zieschang: Looking forward, this is more interesting. We are assuming that this will not continue, this high increase. Also the relative percentage number adjusted by the pension reimbursement from last year, of course, will come down, in favor of us. Looking forward into 2027, this is in so far open because we are waiting for the new tariff agreement. We think given this macroeconomic situation in Germany, increasing unemployment rates, et cetera, no GDP growth at all, we think that this will lead to more modest wage increases compared to the past. In other words, that we will end up with a mid-single digit increase in 2027/2028. Was there a further question?

Speaker #2: This high increase also means the relative percentage number, adjusted by the pension reimbursement from last year, of course, will come down—so in favor of us.

Speaker #2: And looking forward into 2027, this is in so far open because we are waiting for the newer tariff agreement. But we think given these macroeconomic situation in Germany, increasing unemployment rates, etc., no GDP growth at all, we think that this will lead to more modest wage increases compared to the past.

Speaker #2: So with other words that we will end up with a middle mid-single-digit increase in 2027/2028. What are further questions?

Hari Chandramouli: The first question was on CapEx in H1.

Speaker #3: The first question was on capex in H1.

Speaker #2: Yeah, capex. Again, it was compared to the whole year, it was relatively high, as I mentioned, refurbishment of one runway in Frankfurt. Also, the settlement of open contracts regarding terminal 3.

Matthias Zieschang: Yeah, CapEx. Again, it was compared to the whole year, it was relatively high. As I mentioned, refurbishment of one runway in Frankfurt. Also, the settlement of open contracts regarding Terminal 3. With other words, looking forward, the CapEx in H2 will be lower. Just to give you could see the increase in the indebtedness in H1. As of today, we have a net debt on the group level of about EUR 8.5 billion as of today. Compared with the net debt from last year, exact the same date, we are about EUR 100 million higher than last year. In last year, we had the H1 proceeds of more than EUR 100 million driven by the sale of 10% of Delhi Airport, so more income. On the other side, in this year, we paid EUR 92 million dividends to our shareholders.

Speaker #2: So with other words, looking forward, the capex in H2 will be lower. Just to give you you could see the increase in the indebtedness in H1.

Speaker #2: As of today, we have a net debt on the group level of about 8.5 billion as of today. And compared with the net debt from last year, exact the same date, we are about 100 million higher than last year.

Speaker #2: But in last year, we had the first half year proceeds of more than 100 million driven by the sale of 10% of daily airport.

Speaker #2: So, more income. And on the other side, in this year, we paid €92 million in dividends to our shareholders. So, both elements had a negative impact, so to say, of €200 million.

Matthias Zieschang: Both elements had a negative impact, so to say, of EUR 200 million. Today you see just EUR 100 million difference, and this comes from a total CapEx level, which as of today is accumulated EUR 100 million less than previous year. This will continue. For the rest of the year, you will see another EUR 100 million reduction regarding CapEx compared to previous year. This is one of the main effects generating free cash flow as we predicted in the beginning of the year. Total indebtedness, what we said in the beginning will be a little bit below EUR 8.2 billion.

Speaker #2: But you see today, you see just 100 million difference. And this comes from a total capex level which as of today is cumulated 100 million less than previous year.

Speaker #2: And this will continue so for the rest of the year, you will see another 100 million reduction regarding capex compared to previous year. And this is one of the main effects generating free cash flow as we predicted in the beginning of the year.

Speaker #2: And total indebtedness, what we said in the beginning, will be a little bit below 8.2 billion.

Speaker #4: Thank you.

Hari Chandramouli: Thank you.

Speaker #2: So with other words, everything is running in the right direction. Despite the fact that we had this hiccup in Q2.

Matthias Zieschang: In other words, everything is running in the right direction despite the fact that we had this hiccup in Q2.

Speaker #1: As a reminder to ask a question, please press star one and one on your telephone. We will now take our next question from the line of Dario Maglione from BNP Paribas.

Operator: As a reminder, to ask a question, please press star one and one on your telephone. We will now take our next question from the line of Dario Maglione from BNP Paribas. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Hi, thanks for taking my questions. I have three. One on the ground handling contract with Lufthansa. Can you tell us a bit about what alternative Lufthansa have regarding this contract?

Dario Maglione: Hi. Thanks for taking my questions. I have three. One on the ground handling contract with Lufthansa. Can you tell us a bit about what alternative Lufthansa have regarding this contract? For instance, I believe they insourced the ground handling in Munich. Could it happen in Frankfurt too? Second question is on terminal three retail performance. During the presentations, and the call, you mentioned a 30% increase spend per pax in terminal three compared to terminal two. Why is that good? I think previous guidance or kind of soft guidance was that there will be a 50% improvement. Yes, directionally good, but how do you get to 50%? What is missing to get to 50%? Last question around Lufthansa, as you were mentioning the capacity growth doesn't look great. Why is that? Is it just Lufthansa CityLine or something else going on?

Speaker #4: For instance, I believe they insourced the ground handling in Munich. Could that happen in Frankfurt too? Second questions on terminal 3 retail performance. Do you need the presentations and the call you mentioned at 30% increase spent at tax in terminal 3 compared to terminal 2?

Speaker #4: Why is that good? I think previous guidance of kind of soft guidance was that there will be a 50% improvement. So yes, directionally good, but how do you get to 50?

Speaker #4: Or what is missing to get to 50? And then last questions around Lufthansa as you're mentioning the capacity growth doesn't look great. Why is that?

Speaker #4: You just said city line, or is something else going on? Maybe Lufthansa is increasing traffic at other hubs. Thanks.

Dario Maglione: Maybe Lufthansa is increasing traffic at other hubs. Yeah, thanks.

Matthias Zieschang: The first question, what you mentioned is correct. In Munich, they went for an insourcing, as far as we are informed, they took over the employees from Swissport and to do it on their own payroll. In Frankfurt this is not possible because Swissport has a market share of less than 10%. Even if theoretically they would take over all these guys, this is impossible to handle their fleet. Theoretically it's possible, in reality, it cannot work. That is gravity. Regarding spend per pax increase, regarding terminal three, you mentioned the 30% on one side and the 50% guidance. This is not change of the guidance. The explanation is that when we went for 50% guidance, of course, we had in mind the given mix of passengers and sustainable structure.

Speaker #2: The first question what you mentioned, this is correct in Munich. They went for an insourcing so they as far as we are informed, they took over the employees from Swiss ground and to do it on their own payroll.

Speaker #2: So in Frankfurt, this is not possible because Swiss port has had or has a market share of less than 10%. So even if theoretically they would take over all these guys, this is impossible to handle their fleet.

Speaker #2: So it's theoretical, it's possible in reality, it cannot work. It's gravity. In regarding spent per pax increase regarding terminal 3, you mentioned the 30% on one side.

Speaker #2: And the 50% guidance, this is not change of the guidance. So the explanation is that when we went for 50% guidance, we of course, we had in mind the given mix of passengers and sustainable structure.

Speaker #2: Then we had, more or less, a total loss of Middle East passengers, knowing that their expense behavior is very good. It's clearly significantly above average.

Matthias Zieschang: We had more or less a total loss of Middle East passengers, knowing that their expense behavior is very good. It is clearly significant above average. Now we realized 30% in the beginning, in a soft opening phase without more or less Middle East passengers. We ended now up with 30%. On the other side, we see the recovery or we expect the recovery during the year. In other words, with the recovery of these Middle East passengers on one side and further improvements in F&B and fine-tuning in the shops, we are confident to keep to our guidance of 50% higher spend per pax for the passengers in Terminal 3. Third question, what was it?

Speaker #2: And so we now we realized 30% in the beginning in a soft opening phase without more or less Middle East passengers. And we ended now up with 30%.

Speaker #2: On the other side, we see the recovery, or we expect the recovery during the year. And in other words, with the recovery of these Middle East passengers on one side, and further improvements in F&B and fine-tuning in the shops, we are confident to maintain our guidance of 50% higher spend per pax for the passengers in Terminal 3.

Dario Maglione: Lufthansa capacities.

Matthias Zieschang: Lufthansa. As you mentioned, the grounding of Lufthansa CityLine. You can say we had the war in Iran, the exploding of jet fuel prices, reaction of airlines reducing their seat offers on one side, especially with the aircrafts, which are not so fuel efficient. The grounding of Lufthansa CityLine and this cost us a lot of seat capacity at Frankfurt Airport. This is a main reason for the weak performance on the Lufthansa side.

Dario Maglione: Thank you, Matthias.

Operator: Thank you. We will now take our next question from the line of Dirk Schlamp from DZ Bank. Please go ahead.

Dirk Schlamp: Hi, Dirk speaking. Thanks for taking my question. One from my side, you said that international business on average developed broadly as expected. Could you give us a bit more color on that? Which airports are currently showing the biggest deviations from your initial expectations? Thanks.

Matthias Zieschang: Yeah, sure. As always, in the beginning of the year, we have a plan. The day after, the plan is not any longer valid. We have assets which are outperforming, we have assets which are underperforming. Looking back, we have a proven track record of nearly 20 years. When we, at the end of the year, always look to what we have planned for the segment, international activities, and what is the final outcome, you can say it's coincidence. In total, we always reached our EBITDA target as well as passenger target. Having in mind that always some assets are doing better and other ones underperforming. Now coming to our several assets in the portfolio.

Matthias Zieschang: On the positive side, we have, you can say as always, Greece. With month by month more than 5% passenger growth compared to previous year, having in mind that since the pandemic, we had year by year a recovery or a growth, which has been always better than this what we expected. Greece is in the past and now always on the positive side. Also Brazil is doing very well. Fortaleza, it's just 1%. Porto Alegre, 10%. Weighted average it's about 5%, which is fine. Ljubljana is doing very well with actually 15% increase. These are the positive drivers. On the negative side, we have Antalya with minus numbers in the beginning of the year because due to the proximity to Iran and the war on one side and very significant increase on the price side and this hotel business, which dampens the demand.

Matthias Zieschang: So far, it is a little bit better that in July, the last number is -1%, but this is clearly below our expectation. The beginning of the year also, Lima is underperforming passenger-wise. On the financial side, we are happy because for the full year, we expect an EBITDA improvement including the EUR 10 million one-off. We expect an increase of about EUR 30 million based on weak traffic, which is a good increase. I hope I have mentioned all numbers and US market is as planned. It is no surprise, not to the negative and also not to the positive side.

Dirk Schlamp: Okay, thanks.

Matthias Zieschang: You are welcome.

Operator: Thank you. As a reminder, to ask a question, please press star 1 and 1 on your telephone. That is star 1 and 1 to ask a question. There are no further questions at this time. I would now like to turn it back to Florian Fuchs.

Florian Fuchs: Yes. Thank you everybody for the good set of questions. Thank you, Matthias, for the answers. We look forward right now to be in touch soon, maybe on the road or via the phone or here on site in Frankfurt. With that, we would like to conclude the question and answer session. Thank you very much and goodbye.

Florian Fuchs: Yes. Hello everybody, welcome to Frankfurt to our Q2 question and answer session. The presentation got released this morning at 7:00 a.m. CET and is available on the web. Right now, as said before, we will have the question and answer session. With me at the table, we got Dr. Matthias Zieschang, our CFO, and keeping with the previous quarters and previous releases, please do keep our cautionary language in mind when it comes to forward-looking statements. Having said this, we would like to hand over back to the operator to start with the Q&A session now.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take our first question from the line of Carlos Caburrasi from Kepler Cheuvreux. Please go ahead.

Yes, hello everybody, and welcome to Frankfurt to our Q2 question and answer session. The presentation was released this morning at 7:00 a.m. CEST and is available on the web. And right now, as said before, we do have the question and answer session. With me at the table, we have Dr. Matthias Zang, our CFO. And, keeping with the previous quarters and previous releases, please do keep our cautionary language in mind when it comes to forward-looking statements. Having said this, we'd like to hand over back to the operator to start with the Q&A session now.

Thank you.

Star 1 and 1 again.

We will now take our first question.

From the line of Carlos kapari from Caper chevre, please go ahead.

Carlos Caburrasi: Okay. Thank you. Hi, Matthias. Hi, Florian.

Matthias Zieschang: Hello

Carlos Caburrasi: taking my questions. I'll go ahead with just two questions on my side. First, I wanted to focus on the financial results. In Q2, the net financial expense figure, and here excluding joint ventures, was around EUR 100 million. Should we expect this same level in the coming quarters, or has this been any kind of one-off? Second, I was wondering if you could provide some visibility on CapEx. The reduction appears to be progressing a bit more slowly than anticipated, so how confident are you in reaching the EUR 900 million full-year target? Thank you.

Okay, thank you. Hi Matias. Hi Florian. Thank you for for taking my questions. I'll go ahead with Just 2 questions on my side. First, I wanted to focus on the financial results uh in Q2 the net.

Financial expense fee here, excluding during Ventures, was around €100 million. Should we expect this same level in the coming quarters, or has this been any kind of one-off?

And second I was wondering if you could provide some visibility on capex. I mean the reduction appears to be progressing a bit more slowly than anticipated. So how confident are you in reaching the 900 million euro full year Target? Thank you.

Matthias Zieschang: Starting with the last topic, CapEx, we are absolutely confident to end up with EUR 900 million. You mentioned the run rate in the first six months, which is in comparison to further years, a little bit higher, but this has to do that on one side now we are closing all open contracts regarding Terminal 3. This is a ramp down during the year. Second, we had some refurbishment works at our runway, on the southern runway in our parallel system. Here we had a good outflow for this refurbishment, and that's the reason why in the first six months, CapEx has been relatively high, but this will be fully compensated as planned in H2, so that we are absolutely confident to end up with a total CapEx number of EUR 900 million. First part was regarding?

I'm starting with the last topic, um, capex, we absolutely confident to to end up with 900 million.

you mentioned the, the Run rate and the first 6 months, which is

In comparison to further years a little bit higher but this has to do with that on 1 side. Now we are closing all open contracts regarding Terminal 3.

So, this is a ramp down during the year.

And second, we had some refurbishment works at our runway on the southern runway in our parallel system.

And here we had a, a good outflow for these refurbishment. And that's the reason why.

In the first 6, months capex, has been relatively high, but this is the fully compensated estland and the second half.

So that we absolutely confident to to end up with a total capex number of 900 million.

Carlos Caburrasi: The interest result, Q2.

Matthias Zieschang: Interest result.

Carlos Caburrasi: Let me take this from the top.

Matthias Zieschang: Yeah. You have to see that underlying we have the expenses for our total indebtedness, the average rate of interest for the total debt, there will be no change perhaps during the year, an increase from 3.4% to 3.6% at the end of the year. This is a minimal increase on one side. On the other side, we had this special effect that we cannot any longer capitalize interest expenses for the construction expenses regarding Terminal 3, so this was a step up. Now we have a new balanced level for the next couple of quarters.

First part was regarding the interest result to interest results. I think this

yeah, you have to see that um,

underlying we have the, um,

Expenses for our total indebtedness. You know the average rate of interest uh,

Of the total, there will be no change, perhaps, during the year, and an increase from 3.4% to 3.6% at the end of the year. This is a minimal increase.

On 1 side. On the other side, we have this.

Special effect that we cannot any longer capitalized interest expenses for.

Uh, the construction expenses regarding Terminal 3. So this was a step up.

And, uh, now we have a new balance level for the next couple of quarters.

quarters.

Carlos Caburrasi: Okay. Thank you.

Operator: Thank you. We will now take the next question from the line of Tobias Fromme, from Bernstein. Please go ahead.

Okay, thank you.

Thank you. We will now take the next question.

From the line of Tobias from from Bernstein. Please go ahead.

Tobias Fromme: Hello. Thanks very much for taking my question. I had one on retail. Shopping and services spend per pax dropped by 6% in Q2 and by 4% in Q1, while advertising per pax increased by 25% in Q1 and by another 5% in Q2. I was just wondering, when should we expect the inflection point for the shopping and services spend per pax to grow again? Is that with the return of the Middle Eastern travelers or a change in exchange rates? What do you expect over the next two quarters? Lastly, how resilient is the increase in advertisement per pax? Thank you.

Hello. Thanks very much for taking my question. I had 1 on retail

Shopping and services spent for tax dropped by 6% in Q2 and by 4% in q1. Well, advertising per packs, increased by 25% in q1, and by another 5% in Q2, I was just wondering. When should we expect the inflection points for

Um, the shopping and services spend for packs to grow again, is that with the return of the Middle Eastern Travelers or a change in exchange rates?

Matthias Zieschang: Yeah, first of all, spend per pax, you mentioned already the elements working in favor of us or working against us. On one side, we had the positive impact from Terminal 3, where as of today, the increase is about 30% spend per pax. Of course, especially driven also an increase of advertisement proceeds. On the other side, we had a significant loss of Middle East passengers with deep pockets and also willingness to spend a lot of money. Looking forward, first of all, we see and expect a further improvement of the retail business inside Terminal 3 on one side, and this will be supported by the coming back of Middle East passengers, so that we are also confident that looking forward, the spend per pax will go up based on these two factors.

Um and what do you expect over the next 2 quarters? And then lastly how resilient is the increase in advertisement per packs? Thank you.

Yeah, first of all, spend per PAX. You mentioned already the elements working in favor of us or working against us on one side. Uh, we had the positive impact from Terminal 3, where as of today, the increase is about 30% spent per PAX. Of course, uh, especially driven also, one, increase of, um,

advertisement proceeds on the other side, we had a significant loss of Middle East passengers with Deep Pockets.

And also willingness to spend a lot of money and looking forward. First of all we see and expect in further Improvement.

uh, of the retail business inside Terminal 3 on 1 side and this will be

Over the past week, go up.

Based on these 2 factors.

Matthias Zieschang: Regarding sustainability of advertisement, we see a huge demand for billboards, so to say, in Terminal 3 and a very good spending behavior of companies or banks. Even an increase in demand, we are looking where we can install further billboards inside this terminal because we have an excess of demand. Based on this, we are convinced that this is a sustainable trend.

And uh, regarding sustainability of advertisement. We see a huge demand for

uh, billboard so to say in general 3,

And uh, a very good spending behavior of of of companies or Banks.

And uh, even an increase in the demand, we are looking where we can install further Billboards inside this terminal because we have an excess of demand.

And based on this, we are convinced that this is a sustainable trend.

Tobias Fromme: Great. Thank you.

Operator: Thank you. Our next question comes from the line of Cristian Nedelcu from UBS. Please go ahead.

Great. Thank you.

Thank you.

Our next question.

Cristian Nedelcu: Hi. Thank you very much. Could I please ask first on Frankfurt traffic for the winter? Some of the data on airline seat capacity is showing Lufthansa seat capacity in Frankfurt in Q4 down around 7% year over year. I am not sure if this data is accurate or if you can make any comments on what you are seeing or expecting on your side. Secondly, just on the free cash flow, could we kindly ask you to comment a bit? You have reiterated the guidance on the free cash flow this year. Is there a range we should have in mind, like low triple digits? Is that a EUR 100 to 200 million range or a bit more or any color at this stage as we are halfway through the year?

Comes from the line of Christian NAD. Delu from UBS. Please go ahead.

Hi, thank you very much. Um, could I please ask first about Frankfurt traffic for the winter?

Um, some of the the data on airline seat capacity is showing Lufthansa seat capacity in Frankfurt in Q4 down around 7% year-over-year.

I'm not sure if this data is is accurate, or if you can make any comments on on what you're seeing or expecting on your side.

Cristian Nedelcu: If not too much trouble, could you remind us the building blocks next year, the lower CapEx, the Antalya dividend, and other building blocks? The last one, if you allow me, there is a bunch of international tenders that we see in the press, at least there is speculation around them. I think in the past you flagged potentially Egypt or Greece regional airports may be something of interest. I do not know if there is any update there, if those projects could still be of interest or if there is any timeline there that we should keep in mind to see progress on those tenders. Thank you.

Um, secondly um just on the on the free cash flow. Um, could could we kindly ask you to to come with you, you've already that the guidance, um, on on the free cash flow this year? Um, you know, is there a range we should have in mind like to load. Triple digits, is that a 100 to 200 million range or a bit more or any any color at this stage as we are halfway through the year?

And if, if it's not too much trouble, um, could you remind us of the building blocks next year—the lower CapEx, the Antalya dividend, and any other building blocks?

and that the last 1, if, if you allow me

Matthias Zieschang: Yeah. Thank you for your questions. Starting with your last topic, M&A activities, as you mentioned in the market, it could be that Egyptian airports are coming or these regional airports in Greece. We are going to look at both opportunities, whether they are interesting for us or not. We are doing a deep analysis, and after this analysis, then if they are offered, then we have to decide to go or not to go. In principle, we are looking at these airports, and then we have to see whether this could be of interest to us or not. The rest is not relevant for us because we have our balance sheets, and we have our key targets, and we have to bring down indebtedness, so our firepower is limited.

Um, does, does does a bunch of international tenders that that we see in the Press at least or speculation around them? Um, I don't know if I think in the past few Flags um potentially Egypt or or Greece, Regional airports, maybe something of Interest. I don't know if there's any updates there. If um if those projects could still be of interest or if there's any timeline there that we should keep in mind to see progress on those uh on those standards. Thank you.

Yeah, thank you for your questions, starting with your last Topic in a activities. We, as you mentioned in the market, it could be this adjective Egyptian airpods are coming or these Regional airports in Greece.

So we we we are going to look at at both opportunities whether they are interesting for us or not.

And we are doing a deep analysis. And after this analysis, then

If they are offered, then we have to decide to go not to go. But in principle we are looking

at these, um,

Airports. And then we have to see whether this could be of interest for us or or not.

Um, the rest is not relevant for us because we know we have our balance sheet and we have our key targets and we have to bring down indebtedness. So our

Matthias Zieschang: Regarding free cash flow, the free cash flow development in Q2 was a little bit disappointing. This has to do with temporarily working capital effects, which will level out later on during this year. This was, so to say, up and down like a roller coaster, and especially in Q2. We expect the full compensation in the rest of the year. With other words, our metric and our calculation for the free cash flow guidance for this year is robust. The only impact comes from lower traffic at Frankfurt and via lower traffic, we have a little bit of reduced EBITDA expectation, and this, of course, translates also into free cash flow. All the other, what you mentioned, building blocks are stable, are robust, are sustainable.

Fire power is limited.

So regarding free cash flow so the um free cash flow development in Q2 was a little bit disappointing.

This has to do with temporary working capital.

Effects, uh, which will level out later on during this year. So this was thought to say up and down like a roller coaster.

And especially in Q2, so we expect the full compensation and the rest of the year. So with other words um, our

Our meter and our calculation for the free cash flow.

Um,

Guidance for this here, is, is the robust. The only impact comes from

Lower traffic at Frankfurt and why are lower traffic? We have a little bit of reduced abda expectation. This of course Translate.

Matthias Zieschang: There's no change compared to this what we said at the beginning of the year, except the weaker traffic at Frankfurt Airport and therefore a little bit reduced EBITDA expectation. CapEx is, as I mentioned, for this year is stable with EUR 900 million and also going one year forward. Next year, we always said it's about EUR 700 million, there is no change. Nothing will be different. This is what we said in the beginning of the year. Traffic, when you look on our international assets, traffic is very solid. In average, it's absolutely in line with our planning. Also looking forward, we assume that this will continue, this positive performance. Frankfurt, we are weaker than expected. We have on one side, the Lufthansa are running flat or even with reduced seat capacities in the market.

Also into free cash flow but all the other what you mentioned building blocks are stable. Our robust are sustainable. So there's no change compared to this. What we said in the beginning of the year except the weaker traffic at Frankfurt. Airport airport. And therefore a little bit reduced abda and expectation. Um

Also, going 1 year forward next year. We always said it's about

700 million, so there's no change. So nothing is uh, will be different to this. What we said in the beginning of the year,

um,

traffic. When you look on our International assets, traffic is is very solid in average is absolutely absolutely in line with our planning and also looking forward. We

Assume that this will continue this positive performance.

Matthias Zieschang: On the other side, we see Condor delivering what they have guided in the beginning of the year. Of course, due to the size of Condor, this cannot fully compensate the reduction or the weakness of Lufthansa. That for the total year, we again see a number which is on the level of the previous year. More interested is what will happen in 2027. Here we see then from today onward, another delivery of, I think, about 10 Dreamliners coming to Frankfurt, to Lufthansa. We think that this will increase the seat capacity. Condor is continuing with their growth path. I think we'll see 6 additional A330neos.

Frankfort. We are, we are weaker than expected. Um, and we have on 1 side, the luans are running flat or even with reduced uh, seat capacities in the market on the other side.

We see Condor delivering what they have guided in the beginning of the year, but of course you due to the size of condo, this cannot fully compensate.

Uh, the reduction or the weakness of of Lufthansa.

So that um for the total year, we again see a number which is on the level of the previous year.

More interested is what will happen in in 27 here. We see then.

From today, onward. Another delivery of I think about 10 Dreamliners coming to Frankfurt to luanza.

And we think that this will increase and the Sikh capacity, condos continuing with their growth path. Um,

they are, I think will

Florian Fuchs: I think they leased right now 4 new, haven't decided yet how many will come, but also A330s will come to the-

Matthias Zieschang: Four to six long-haul aircraft. Let me say for 2027, this is not a guidance from today because we have to see what will happen in the next couple of months. From today's perspective, we see this number of passengers in 2027, what we saw in the beginning of this year for 2026.

See, 6 is correct. 6 additional 8330 news? Yeah, I think they they at least right now, 4 new. Haven't decided yet how many will come but also a330s will come to the 4, to 6, um, Long Haul aircraft and um, so

That, let me say for 27, this is not a guidance from today because we have to see what will happen. The next couple of months.

Florian Fuchs: Yep. No, I think these are the questions or the answers.

But uh from a today's perspective, we see we see this number of passengers in 27. What do we saw in the beginning of this year for for 26?

Cristian Nedelcu: Thank you very much.

Um yeah I think this another the questions or the answers.

Operator: Thank you. Our next question is from the line of Graham Hunt from Jefferies. Please go ahead.

Thank you very much.

Thank you.

Our next question.

This is from the line of Graham Hunt from Jefferies. Please go ahead.

Graham Hunt: Hi, Matthias. Hi, Florian. Thanks very much for the questions. Maybe just sticking with the free cash flow and CapEx theme. First question, I think you were guiding to around EUR 200 million, I think that had been mentioned at the beginning of the year. Maybe you can just help us with the building blocks. You have the loss of EBITDA that you mentioned, the one-off tax charges. Are you expecting consensus to come down closer to EUR 100 million now? That's question one. Question two, just on your, I think you had a soft target of coming below 5x net debt EBITDA by 2027. Do you still see that under current conditions as achievable? Appreciate that it's difficult visibility-wise in the current market, as it stands today, does that still seem like a reasonable assumption? Last question, just a quick one, I guess, on ground handling.

Hi Florin. Thanks very much for the questions. Um maybe just sticking with the free cash flow and capex team.

um, I think

first question, I think you were guiding to around 200 million. I think that had been mentioned at the beginning of the year. Maybe you can just help us with the building blocks. You have the, um,

Uh the then the the loss of ibid Dolly, you mentioned that the 1-off tax charges are you sort of expecting consensus to come down closer to 100 million. Now, um, that's question 1, question 2, just on um, your I think you had a sort of soft target of coming below 5 times, net debit dial by 27, do you still see that under current conditions as achievable? Um, appreciate that it's difficult. Visibility wise, um, in the current market but as it stands today, does that still seemed like a reasonable assumption?

Um, and then, last question, just a quick one, I guess, on, um,

Graham Hunt: Any development there around Lufthansa and the contract? Thank you.

Matthias Zieschang: Thank you for your questions. Building blocks of free cash flow calculation. What is stable? Stable is the number of EUR 900 million regarding CapEx, so no change. Also interest expenses on a net basis, EUR 400 million net result. About EUR 100 million tax cash out. As always, no change and on the other side, we have dividend proceeds primarily from Antalya, fully compensated on the other side by fixed concession payments for our assets in the international portfolio. You can say everything is stable except EBITDA, where we coming with our guidance saying up to EUR 1.5 billion internally. We had a clear target to meet the EUR 1.5 billion based on 65 to 66 million passengers at Frankfurt Airport.

On ground handling, any development there, uh, around Lufthansa and the contract? Thank you.

For your questions, um, building blocks of free cash flow.

Calculation, what is stable, stable?

Is the number of 900 million regarding capex and no change.

Um, also interest expenses uh, on a net basis. Um,

On a million. Um,

Uh, net result.

Um, about €100 million tax cash out. So as always, no change. And on the other side, we have dividend proceeds primarily from—

Uh, from Antalya fully compensated On The Other Side by 6, Concession payments, for our assistance in the international portfolio.

Matthias Zieschang: Now, if you would end up with 63, if you would go in the middle of the range, we are going to lose 2.5 million times EUR 15 per passenger. We have, on the aviation side, a loss of EUR 40 million, partly compensated by perhaps a better performance on the international side. Just a partial compensation will let the final EBITDA, on a group level, will be clearly above previous year EBITDA level, but it will be below EUR 1.5 billion. This difference, let me say, due to the traffic weakness of Frankfurt Airport, is a negative impact at the end of the day of the absolute free cash flow number. We are talking about a double-digit million amount. In other words, all the building blocks, what you mentioned, are stable compared. This was we guided in the beginning of the year.

Uh 6 million passengers, I'm trying for the airport now if you would end up with 63 so we if you would go in the middle of the range, we are going to lose 2 and a half million.

Uh, times 15 euro per passenger. So we have on the aviation side, a loss of 40 million,

Uh partly compensated by perhaps a better performance on the international side but just a partly compensation. So that

The final EPA, on a group level, will be clearly above the previous year MDA level, but it will be below $1.5 billion. So this difference, let me say, is due to the...

traffic weakness of Frankfurt, airport is a negative impact at the end of the day of the absolute free cash flow number. But it's

you're talking about a double digit me in amount. So with other words, all the building blocks what you mentioned are stable compared this would be guided

Matthias Zieschang: A net debt to EBITDA number. Yeah. It will be around five times whether it is 4.9 or 5.1 or 5.2, we have to see at the end of the day. I think we have to see how we end up with the net indebtedness at the end of this year and then going forward on one side. What will be the final EBITDA guidance for 2027, that is for sure. This depends. I think we will not see any surprise on the international side, a continuation of this very good trend and the performance. Let me say, the question mark and the whole calculation will be traffic recovery at Frankfurt Airport in 2027. You know the metrics, EUR 15 just in aviation plus a little bit coming from retail if you would have more passengers.

Um, in the beginning of the year and that that to MBTA number.

Yeah. Uh, it it will be around 5 times. Now whether it's 4.9 or uh, 5 Points 1 or 5.2, we have to see at the end of the day, I think we have to see how we end up with the net indebtedness at the end of this year and then going forwards on 1 side.

And what will be the, the final FDA guidance for for 27? That's that's for sure. On this depends I think we, we don't, we will not see any surprise on the international side. The continuation of this very good.

Uh, Trend and and the performance. And let me say the question mark, and the whole calculation will be

Traffic recovery at Frankfurt. The airport in in 2017. And you know, the Matrix 15 Euro just in aviation Plus.

Matthias Zieschang: This is the swing influencing EBITDA and via EBITDA, of course, and net debt to EBITDA. Ground handling, nothing new. Our contract is on the table. It is a fair offer. We based on the approach that all our cost items, including cost of capital, must be covered. It is up to Lufthansa now. Nothing new.

uh, a little bit coming from retail, if you would have more passengers, this is a the swing

Influencing epda and vda, of course. And that did to

FDA ground handling, nothing new. Our our contract is on the table.

It's a fair. It's a fair offer. So we based on the approach. That's all our.

Cost items including cost of capital must be covered.

And um, it's up to now.

Graham Hunt: Thanks. Maybe just very quick follow-up. Just as you mentioned on the net debt, I suppose it was associated with a potential increase in dividend payout. Maybe the question was more, is that still quite a hard limit for you, or it is more of a take into consideration everything in the round?

so, nothing new

Matthias Zieschang: No. Let me say, one thing is absolutely clear. Next year we are paying EUR 1 for this year. This is a given and will not be discussed. The question is one year later on. This is not exactly hard linked to whether it is 4.95 or 5.07. At the end of the day, we are sitting together in the management team and with the supervisor report and our main shareholders, we are discussing this topic. With other words, it can even be that we are going to kick in the new regime, even if, for example, net debt to EBITDA would be, give the number 5.1, yeah.

Thanks maybe just very quick, follow up, as you mentioned on the net debt, I suppose it was associated with a potential increase in dividend payout. So maybe the question was more, is that still quite a hard limit for you or is more of a taking into consideration, everything in the round?

Let me see, is 1. Thing is absolutely clear. And next year, we are paying 1 euro for this year. This is a given

and will not be discussed. As the question is 1 year later on.

And this is not exactly.

Hard link to whether it's 4.95 or 5.07. Yeah. At the end of the day we are sitting together and the management team and with the supervisory board and our main shareholders, we are discussing this topic. So with other words, it can even be that we are going to kick in the new

um,

Graham Hunt: Thank you.

Regime even if, for example, that that to every day would be if the number 5.1. Yeah.

Operator: Thank you. We will now take the next question from the line of Hari Chandramouli from Deutsche Bank. Please go ahead.

Thank you.

Thank you. We will now take the next question.

Hari Chandramouli: Yeah. Hi. Good afternoon, everyone. Thanks for taking my questions. Maybe the first one on CapEx. If I look at the cash flows for six months so far, believe you've spent around EUR 650 million. Now, maybe the like-for-like number for the full year guide is the EUR 900 million plus the EUR 100 million for IFRS and others, so EUR 1 billion. Could you help me understand what is changing in H2 for you to be hitting the EUR 350 million level run rate rather than EUR 650 million for H1? Secondly, maybe on the wage costs. In aviation, I think it's around 11% increase. There's not much increase in headcount. What is this increase driven by? Given, I think the wage inflation is quite low. If there are any one-offs here, how should we think about how personnel costs move into 2027? Thanks.

From the line of harana from Deutsche Bank. Please go ahead.

Yeah. Hi, uh, good afternoon everyone. Uh, thanks for taking my questions. Uh, maybe the first 1 on, um, Apex. If I look at the cash flows for 6 months so far, I believe you've spent around 650 million euros.

Matthias Zieschang: Yeah. With regarding wage costs, when you look on the percentage, it's high, especially in aviation. Here we have three elements which I would like to highlight. We had them so far, one-off that we had to increase provision for bonus payments for the whole management team, which was significant in Q2, so one-off. Second, we had higher as normal also expenses from partial retirement or early retirement. We had also some structural effects by the tariff agreement, which is sustainable of course, because when you look on the average, the tariff agreement was okay, insofar a bias that the low-income people are receiving relatively more than the high-income people. Here there was some impact in aviation, but the main elements are one-off is again, the provisions for bonus payments one side, and partial and early retirement on the other side. Looking forward, this is more interesting.

Um, given I think the Page information is, uh, quite low. Um, and if there are any one of us here, uh, how should we think about, uh, how personnel costs move into 2027? Uh, thanks.

Yeah, I was uh regarding wage costs when you look on the percentage. It's it's high.

Especially in aviation, here we have, um,

3 Elements, which I would like to highlight.

We had in so far 1 off that, we had to increase provision for.

Bonus payments, um, for the whole management team, which was significant in Q2. So 1 of

Um, second uh we had higher as normal.

Also expenses for a partial retirement or early retirement.

And we had also some structural Effects by the Tariff agreement, which is sustainable of course because when you look on the average, uh the Tariff agreement was okay but within so far, our bias that the the low income people are receiving relatively more than the high income people.

And here there was some impact in aviation, but the main elements are 1 of this again, the provisions for bonus payments.

Matthias Zieschang: We are assuming that this will not continue, this high increase, also the relative percentage number adjusted by the pension reimbursement from last year, of course, will come down, so in favor of us. Looking forward into 2027, this is insofar open because we are waiting for the new tariff agreement. We think given this macroeconomic situation in Germany, increasing unemployment rates, et cetera, no GDP growth at all, we think that this will lead to more modest wage increases compared to the past. With other words, that we will end up with a mid-single-digit increase in 2027/2028. Was there a further question?

1 side and partial and earlier retirement on the other side looking forward. This is more interesting. Um,

We are assuming that this will not continue. These high increases also affect the relative percentage numbers.

adjusted by the

Tension reimbursement from last year. Of course, uh, will come down. So in favor of us

And looking forward into 27, this is in so far open because we are waiting for the newer T of agreement. But we think given these microeconomic situation in Germany,

Increasing unemployment rates Etc.

No GDP growth at all. We think that this will lead to more modest wage increases compared to the

past, with other words, that we will end up with a

a middle.

Uh, within the digit increase in 27/28.

Florian Fuchs: The first question was on CapEx in H1.

Matthias Zieschang: CapEx. Again, it was compared to the whole year, it was relatively high. As I mentioned, refurbishment of one runway in Frankfurt, also the settlement of open contracts regarding Terminal 3. With other words, looking forward, the CapEx in H2 will be lower. Just to give you could see the increase in the indebtedness in H1. As of today, we have a net debt on the group level of about EUR 8.5 billion as of today. Compared with the net debt from last year, exact the same date, we are about EUR 100 million higher than last year. In last year, we had the H1 proceeds of more than EUR 100 million driven by the sale of 10% of Delhi Airport, so more income. On the other side, in this year, we paid EUR 92 million dividends to our shareholders.

Um what a further question. The first question was on capex and H1. Yeah, again it was compared to the hole, it was relatively high. As I mentioned, refurbishment of 1, Runway, uh in Frankfort, also the settlement of open

Uh contracts regarding Terminal 3. So with other words looking forward, the carpex in in H2 will be lower just to give you. You could see the increase in the indebtedness in in H1.

as of today, we have, um,

Um, we have a net debt on the group level of about 8.5 billion as of today.

And compared with the net debt from last year,

Exact the same date. We are

about 100 million higher than last year.

But in last year, we had, um, the first half-year proceeds of more than €100 million, driven by the sale of 10% of Dalaman Airport.

Matthias Zieschang: Both elements are at a - impact, so to say, of EUR 200 million. Today you see just EUR 100 million difference, and this comes from a total CapEx level, which as of today is accumulated EUR 100 million less than previous year. This will continue. For the rest of the year, you will see another EUR 100 million reduction regarding CapEx compared to previous year. This is one of the main effects generating free cash flow as we predicted in the beginning of the year. Total indebtedness, what we said at the beginning, will be a little bit below EUR 8.2 billion.

Um so more income uh and and the other side in this year we paid 92 million dividends to our shareholders.

So both elements um, are negative impacts so to say of 200 million,

but you see today, you see just 100 million difference and this comes from

a total capex level, which as of today is

cumulated 100 million less than

previous year and this will continue. So, for the rest of the year you will see another 100 million reduction

Uh, regarding capex compared to previous year. And this is 1 of the main effects. Uh, generating uh, free cash flow as we predicted in the beginning of the year.

And total indebtedness. What we said in the beginning will be a little bit below, uh, 8.2 billion.

Hari Chandramouli: Thank you.

Matthias Zieschang: In other words, everything is running in the right direction despite the fact that we had this hiccup in Q2.

Thank you.

So with other words, everything is running in the right direction.

Is hiccup in.

Uh, in Q2.

Operator: As a reminder, to ask a question, please press star one and one on your telephone. We will now take our next question from the line of Dario Maglione from BNP Paribas. Please go ahead.

As a reminder to ask a question. Please press star 1 and 1 on your telephone. We will now take our next question, from the line of Dario Milan from BMP pariba. Please go ahead.

Dario Maglione: Hi, thanks for taking my questions. I have three. One on the ground handling contract with Lufthansa. Can you tell us a bit about what alternative Lufthansa have regarding this contract? For instance, I believe they insourced the ground handling in Munich. Could it happen in Frankfurt too? Second question is on Terminal 3 retail performance. During the presentations on the call, you mentioned a 30% increase spent at pax in Terminal 3 compared to Terminal 2. Why is that good? I think previous guidance or kind of soft guidance was that there will be a 50% improvement. Yes, directionally good, but how do you get to 50? Or what is missing to get to 50? Last question around Lufthansa, as you were mentioning the capacity growth doesn't look great. Why is that? Is it just CityLine or something else going on?

Hi. Thanks for taking my questions. I have three. Uh, one on the ground handling contract with Lufthansa.

um,

can you tell us a bit about what alternative Luana have?

Regarding this contract, for instance, I believe they insourced.

The ground entering the Munich. Um, could it happen in front in Frankfort 2?

Second questions on Terminal 3 retail performance in the presentation. Um and the call you mentioned at 30% increase.

And spend the tax in terminal 3 compared to the 2.

Why is the good? Um, I think previous guidance or kind of soft guidance. Was that there would be a 50% Improvement?

So just Direction input. But how do you get to 15?

Uh, of what is missing to get to 50?

And then last questions around Lou has um um the mentioning the the capacity group doesn't look great. Uh why is that um

Um, you just City Line.

Dario Maglione: Maybe Lufthansa is increasing traffic at other hubs. Yeah, thanks.

Or something else. Going on? Maybe look time. Say is increasing traffic at a time.

Matthias Zieschang: The first question, what you mentioned is correct. In Munich, they went for an insourcing. As far as we are informed, they took over the employees from Swissport and to do it on their own payroll. In Frankfurt, this is not possible because Swissport has a market share of less than 10%. Even if theoretically they would take over all these guys, this is impossible to handle their fleet. It's theoretically possible. In reality, it cannot work. It's gravity. Regarding spend per pax increase, regarding terminal three, you mentioned the 30% on one side and the 50% guidance. This is not change of the guidance. The explanation is that when we went for 50% guidance, of course, we had in mind the given mix of passengers and sustainable structure.

Yeah, thanks.

The first question. Um, what you mentioned is correct. In Munich, they went for insourcing.

So they, as far as we are, informed, they took over the employees, from Swiss ground, and to do it on their own.

Payroll. Um, so in Frankfort, this is not possible because this port has had uh or has a market share of less than 10%.

even if theoretically, they would take over,

All these guys, this is impossible to handle their feet to its theoretical. It's possible in reality, it cannot work.

That is private to you. Um, in regarding, um,

Spend Parks increase regarding Terminal 3. You mentioned the 30% on 1 side.

And the 50% guidance, this is not.

Matthias Zieschang: We had more or less a total loss of Middle East passengers, knowing that their expense behavior is very good. It's clearly significant above average. Now we realized 30% in the beginning, in a soft opening phase, without more or less Middle East passengers, and we ended now up with 30%. On the other side, we see the recovery, or we expect the recovery during the year. In other words, with the recovery of these Middle East passengers on one side and further improvements in F&B and fine-tuning in the shops, we are confident to keep to our guidance of 50% higher spend per pax for the passengers in terminal three. Third question, what was it?

Change of the guidance. So the explanation is that when we went for 50% guidance, we of course we had in mind the given mix of of passengers and uh sustainable structure. Then we had more or less a total loss of Middle East passengers.

knowing that they are, um,

Expense behavior is very good. It's clearly significantly above average.

And so, we now realized 30% in the beginning.

Uh, in a soft opening phase without more or less Middle East passengers. And we ended now up with 30% and the other side, we see the recovery or we expect the recovery during the year. And with other words with the recovery of these

Middle East passengers on one side and further.

Improvements in in FNB and and fine tuning in the shops.

We are confident uh, to um, to keep to our guidance of 50%.

Florian Fuchs: Lufthansa capacities.

Matthias Zieschang: Lufthansa. Yeah, as you mentioned, the grounding of Cityline. You can say we had the war in Iran, then the exploding of jet fuel prices, then reaction of airlines reducing their seat offers on one side, especially with the aircraft, which are not so fuel efficient. The grounding of Cityline, and this cost us a lot of seat capacity at Frankfurt Airport, and this is the main reason for the weak performance on the Lufthansa side.

Higher than the parks for the passengers in term of rear, third question, what was it? Yeah, as you mentioned the city, the grounding of city lines, so you can say we had the war in Iran, then the the exploding of of jet fuel prices,

um,

then reaction of, of Airlines reducing the, the seat offers on 1 side, especially with the aircrafts, which are not so fuel efficient,

and um,

then the

Grounding of, of City Line. And this costs us a lot of

Lot of, uh, seat capacity and Frank for the airport and this is the main reason.

Uh, for the weak performance on the LOO side.

Dario Maglione: Yeah. Thank you, Matthias.

Operator: Thank you. We will now take a next question from the line of Dirk Schlamp from DZ Bank. Please go ahead.

Yes.

Thank you.

We will now take a next question.

Dirk Schlamp: Hi, Dirk speaking. Thanks for taking my question. One from my side, you said that international business, on average, developed broadly as expected. Could you give us a bit more color on that? Which airports are currently showing the biggest deviations from your initial expectations? Thanks.

From the line of Duke Slump, from The Zed Bank, please go ahead.

Some usage that international business on average developed, broadly as expected. Uh, could you give us a bit more color on that which airports are currently showing? Um, the biggest deviations from your initial expectations?

Matthias Zieschang: Yeah, sure. As always, in the beginning of the year, we have a plan. The day after, the plan is not any longer valid. We have assets which are outperforming. We have assets which are underperforming. Looking back, and we have a proven track record of nearly 20 years, and when we, at the end of the year, always look to what we have planned for the segment, International Activities, and what is the final outcome, you can say it's coincidence. In total, we always reached our EBITDA targets as well as passenger targets, having in mind that always some assets are doing better and other ones underperforming. Now coming to our several assets in the portfolio. We have on the positive side, we have, you can say, as always, Greece with month by month, more than 5% passenger growth compared to previous year.

Thanks.

Yeah, sure. As always, we have in the beginning of the year, we have a plan

And the day after the plan is not any longer. Well, it's so we have assets, which outperforming we are. We have assets which are underperforming but

Looking back. And we have a proven track record of nearly 20 years and when we at the end of the year, always look to the what we have planned for the segment.

International activities and what is the final outcome and say it's coincidence. We always in total, you always reached our FDA targets as well as dangerous targets having in mind that some always some assets are doing better in other ones uh under the form. So now coming to to our several Assets. In the portfolio, we have on the positive side, we have, you can say, as always Greece,

Matthias Zieschang: Having in mind that since the pandemic, we had year by year a recovery or a growth, which has been always better than this what we expected. Greece is in the past and now always on the positive side. Also Brazil is doing very well. Fortaleza, it's just 1%, but Porto Alegre, 10%. Weighted average it's about 5%, which is fine. Ljubljana is doing very well with actually 15% increase. These are the positive drivers. On the negative side, we have Antalya with minus numbers in the beginning of the year because due to the proximity to Iran and the war on one side and very significant increase on the price side and this hotel business, which dampens the demand. Now so far, it's a little bit better that in July, the last number is -1%, but this is clearly below our expectation.

with month by month, more than 5% passenger growth compared to previous year, having in mind that since the pandemic we had year by year,

A recovery or a growth which has been always better than this—what we expected. So Greece is in the past and now always on the positive side, and also Brazil is doing very well for Talissa. It's just 1%, but probably the 10%. So weighted average is also—it's about 5%, which is fine.

Lubana is doing very well with actually, 15% increase.

Uh, so these are the, um,

The positive drivers on the negative side, we have Antalya.

with minus numbers in the beginning of the year because to you to the proximity to Iran and the war on 1 side and

um, very significant increase on the price side and these um these

Um, Hotel business, which dampens the the demand.

Matthias Zieschang: The beginning of the year also, Lima is underperforming passenger-wise. On the financial side, we are happy because for the full year, we expect an EBITDA improvement to including the EUR 10 million one-off. We expect an increase of about EUR 30 million based on weak traffic, which is a good increase. I hope I have mentioned all numbers. US market is as planned. It's no surprise, not to the negative and also not to the positive side.

Now, and so far, it's a little bit better that in July the last numbers minus 1%, but this is clearly below our expectations, the beginning of the year. Also Lima is underperforming passenger wise on the financial side. We are. We are happy because

for the full year, we expect an FDA Improvement to including the 10 million 1 of

We expect an an increase of about 30 million euro.

Based on on weak traffic, which is a good increase. And um,

I hope I have mentioned.

All numbers and US market is as as planned, it's it's no surprise.

Dirk Schlamp: Okay, thanks.

Without not to the negative and also not to the positive side.

Matthias Zieschang: Welcome.

Okay, thanks.

Operator: Thank you. As a reminder, to ask a question, please press star one and one on your telephone. That is star one and one to ask a question. There are no further questions at this time. I would now like to turn it back to Florian Fuchs.

Welcome, thank you as a reminder to ask a question. Please press star 1 and 1 on your telephone. That's star 1 and 1 to ask a question.

There are no further questions at this time, I would now like to turn it back to Florian. Fox fox.

Florian Fuchs: Yes. Thank you everybody for the good set of questions. Thank you, Matthias, for the answers. We look forward right now to be in touch soon, maybe on the road or via the phone or here on-site in Frankfurt. With that, we would like to conclude the question and answer session. Thank you very much and goodbye.

Yes. Uh thank you everybody for the good set of questions. Uh thank you Matias for the answers. We look forward right now to be in touch. Soon, may it be on the road or via the phone or here on site in Frankfurt. And with that, we'd like to conclude the question and answer session. Thank you very much and goodbye.