SWOT Analysis – Fraport, a major investor but with more divestments than acquisitions of late

In the run-up to the Global Airport Development conference in Munich in Dec-2024, this is the third in a series of SWOT analyses of some of the larger investors and operators in the airports business.

Fraport, with its head office at one of Europe's leading gateway and hub airports, is smaller in scope than some its peers, but has gained a reputation over many years, mainly in airport management and concession deals (while it has other businesses, such as retail concession operations in the US).

Frankfurt Airport has lost some of its power recently; other German airports are on the up, while operational costs in Germany are also getting higher.

As such, Fraport's investments in foreign airports have been valuable, especially those in Türkiye and Peru, and Fraport entered the Brazilian market at the right time. It is probably well positioned to enlarge its portfolio there if it chooses to do so.

One or two of the other investments are more questionable.

Once an inveterate bidder, its interest seems to have diminished since the onset of the COVID-19 pandemic, although that might be at least accounted for by events. Events that have meant that it has left early investments in China, India and Russia in recent years, and it is yet to be revealed whether it will now begin to pick up speed again as more opportunities arise.

Or if it will content itself with its existing, reduced portfolio.