Frankfurt Airport operator Fraport expects 2006 core profit to rise 4 to 5 percent, helped by modest passenger growth at Frankfurt and higher spending in airport shops, restaurants and car parks.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 19 percent to EUR178.9 million euros (USD$229.5 million) in the second quarter, helped by an 11 percent rise in profit at its retail and properties division.

But although profits beat expectations, they were inflated by EUR20 million (USD$25.6 million) of one-off gains from the sale of a 50 percent stake in aviation equipment management firm TCR and the release of a provision relating to a ground handling contract with Lufthansa.

Fraport said on Tuesday it expected 2006 passenger numbers at Frankfurt to rise 1.5 percent from 52.2 million last year, below a previous forecast of 2 percent growth as capacity constraints slow growth.

Full-year sales are expected to rise by a similar amount. Second-quarter sales grew 5.5 percent to EUR549.9 million (USD$705.5 million).

Fraport added that it expected net profit to rise more than 10 percent this year, after net profit rose 54 percent to EUR69.5 million (USD$89.2 million) in the second quarter.

Fraport posted EBITDA of EUR547.5 million (USD$702.5 million) and net profit of EUR161.5 million (USD$207.2 million) on sales of EUR2.1 billion (USD$2.7 billion) last year.

Fraport's retail and properties division contributed around 55 percent of total EBITDA in the first six months of the year, with the figure up 11 percent to EUR158.1 million (USD$202.8 million), including EUR83.5 million (USD$107.2 million) in the second quarter.

The key retail concessions per passenger figure -- which includes shopping, services and advertising -- rose 14 percent from a year earlier to 2.57 euros.

"This resulted from new openings in the food and beverages and financial services areas, concentrated sales promotion measures in the shopping sector and from increased advertising in connection with the FIFA World Cup, as well as new advertising formats," Fraport said.

Fraport said an on-going cost program to "make Fraport fit" would save EUR50 million (USD$64.2 million) by 2010, while its "Focus Competition" project had so far identified potential savings of EUR25 million (USD$32.1 million), to be realized in full by 2010.