MIAMI – Airport operator and ground handler Fraport AG is planning massive job reductions due to the economic impact of the coronavirus pandemic.
Fraport has released no statements regarding this situation but has reassured that it will adjust the number of employees according to traffic demand.
As claimed by some Fraport’s workers, up to 3,000 jobs are to be cut, corresponding to 14% of the total workforce.
According to its latest employees report, Fraport has approximately 22,000 employees working directly with the German Company.
Stefan Schulte, Chief Executive of the Airport Operations said, “we have to reduce our material and equipment expenses, but also our personnel expenses accordingly.”
The measures primarily affect the Group’s Ground Handling branch, which, according to the 2019 Annual Report, employs 9,236 staff members. This means that around 1,800 jobs could be lost in this segment alone.
One of the most profitable and important assets for Fraport is Ground handling.
With around US$799,5m (€707m) of revenues during 2019, the Ground Handling branch is one of the most profitable businesses for the company.
Fraport, in order to keep the business profitable, has to cut job expenditures that last year amounted to US$530m (€468m).
Furthermore, According to Schulte, the reduction in non-direct jobs will be larger, reaching an estimated 30%.