Sydney Airport Share Price Crumbles

Shares of Sydney Airport Holdings Ltd [ASX:SYD] are down 1.1% today.

Why did Sydney Airport’s Shares Crumble?

 The Advanced Passenger Processing system — used during check-in to confirm if passengers are authorised to travel to their destination — crashed at 8:00am this morning AEST, which meant that passengers had to be checked in manually.

The system error caused chaos, with large queues forming and delays in international airports located in Australia and New Zealand. The system was restored by 11:00am.

Shares were trading at $7.20 midday, down from $7.28 last Friday.

At the beginning of the month, Sydney Airport turned down the option of building Sydney’s second airport at Badgerys Creek. The company cited considerable risks associated with the development and operation of the new airport as the reason. The truth is that they would have had to invest a considerable amount of money with years of no returns.

The new airport will now be developed by the government and is set to open by 2026.

The future for ASX:SYD

Shares seem to be recovering, and are now trading up at $7.26 at time of writing. Sydney Airport continues to work globally to attract airlines and increase choice for passengers. The company is also investing in roadworks and improving access to and around the airport.

Investors need to decide if the growth the company has had since 2009 will continue.

Selva Feigedo,

For Money Morning

 


Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up close many of the economic phenomena that worry Port Phillip Publishing readers, like hyperinflation, bank bail-ins and governments burdened with so much debt it cannot possibly be repaid.

Every week, she goes through each article, research note and recommendation produced by our experts around the world to give you information on how to build and protect your wealth. Selva packages the week’s best ideas into one easy to read report: Port Phillip Insider Extra.


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia