(RTTNews) - German airport operator Fraport Group (FRA.DE, 0O1R.L, FPRUF.PK) announced Thursday a decrease in second-quarter net profit in line with forecasts, even as EBITDA, a key earnings gauge, posted a modest year-over-year gain driven by higher revenues. The company also upheld its fiscal 2026 guidance.

Fraport CEO Stefan Schulte noted, "Passenger volumes in Frankfurt are flat amid strikes and the current geopolitical tensions in the Middle East, yet traffic is expanding at most Fraport Group airports outside Germany. Financially, operations remain on course. We are therefore keeping our full-year forecast intact with respect to our financial targets."

Group result in the second quarter dropped 32.2 percent to 84.7 million euros from 125.0 million euros a year earlier. Basic earnings per share fell 37.5 percent to 0.75 euro from 1.20 euros in the prior-year period.

The expected net-profit decline stemmed from accounting effects tied mainly to the commissioning of new terminals in Lima and Frankfurt.

Operating result or EBITDA inched up 0.7 percent to 386.3 million euros from 383.7 million euros in the previous year.

Revenue for the quarter advanced 5.8 percent to 1.187 billion euros from 1.122 billion euros a year ago. Revenue adjusted for IFRIC rose 3.9 percent.

The company observed that most airports in its international portfolio recorded positive passenger growth during the first half.

By contrast, passenger numbers at Frankfurt declined 0.8 percent in the first half. At FRA, strikes at Lufthansa alone impacted nearly 700,000 travelers.

The firm added that geopolitical conditions in the Middle East triggered sharp oil-price increases and weaker demand for regional travel, leading airlines to reduce capacities.

Looking to fiscal 2026, Fraport continues to project a net-profit decline driven chiefly by higher interest costs and increased depreciation and amortization after major expansion projects are completed. Group EBITDA is still expected to rise, reaching up to roughly 1.5 billion euros from 1.44 billion euros last year.

Because of strikes, Middle East geopolitical strains, and resulting airline capacity cuts, Fraport now anticipates Frankfurt passenger volumes will hold near the prior-year level of about 63.2 million.

The softer traffic trend will exert a moderating influence on earnings.

Nevertheless, the Executive Board still anticipates broadly positive results from the Group's international airport portfolio.

The company had previously projected Group traffic to reach around 188-195 million passengers.

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