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.
For Money Morning