Fraport to compensate rising inflation with price hikes
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FILE PHOTO: Cleaning personel of Fraport airport disinfects a waiting area as a passenger takes some rest during a guided tour hosted by Fraport airport and the airline to present their hygiene procedures as travel bans are lifted after the coronavirus di
FRANKFURT (Reuters) - Germany's largest airport operator Fraport said on Tuesday it expects to be able to compensate for rising inflation by passing costs to customers even as it sees higher consumer prices over the next couple of years.
"We have this, so to say, perfect inflation protection as we collect share of the revenue realized in a shop. So whenever inflation drives revenues up, we also have higher proceeds," finance chief Matthias Zieschang said in a conference call.
"We have a strong focus on luxury goods where you currently can see even higher inflation rates. So it could be that on the retail side, we also can be an inflation winner," Zieschang added.
On the real estate rental side, Fraport's newer contracts already include inflation indexation and it just needs to look to adjust the older ones as they need to be renewed, the CFO said.
(Reporting by Zuzanna Szymanska; Editing by Paul Carrel)
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