Shares of Sydney Airport Holdings Pty Ltd [ASX:SYD] have slipped further in value this morning after releasing its September traffic performance.
Sydney Airport shares have been on a downward trend since early September, losing around 13% of its share value in under two months.
This week we have seen shares in the company pull back slightly, lifting more than 3% since the beginning of the week. Although, it seems this morning’s figures didn’t gain investors’ confidence, with the fall continuing.
Sydney Airport’s disappointing passenger growth
This morning the company reported that total and international passengers grew 0.4% and 1.7% for the month of September, in comparison to year prior.
These results seem disappointing when compared to August’s performance. However, Sydney Airport CEO Geoff Culbert justified the impact, saying that the school holiday period fell later this year than the year before and therefore,
‘Pleasingly, total and international passengers grew 2.9% and 4.8% respectively for the calendar year to date compared to the pcp.’
Despite this, the growth rate is still collectively lower than last month’s, where total and international passengers grew 3.8% and 4.7%.
Mr Culbert noted two ‘positive announcements’ in today’s update that could potentially provide growth opportunities for Sydney Airport. The Commonwealth Government have delivered improved bilateral air services agreements with Fiji and the Philippines, which will increase the number of available seats for airlines in both countries.
Should you invest in Sydney Airport?
While results mightn’t have met investors’ expectations, the growth rate of passengers was still an improvement on the year prior.
If this growth can be maintained, the gradual fall in Sydney Airport’s share price in recent months could be seen as the perfect opportunity to buy cheap stock.
For Money Morning
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