Sydney Airport’s Share Price Up 3.4% on Midyear Performance Update

Shares in Sydney Airport Holdings Pty Ltd [ASX:SYD] haven risen in response to newly released passengers numbers and updated performance and flight updates.

At time of writing, Sydney Airport’s share price is valued at $8.19, up 3.4%.

As Australia’s largest airport, Sydney Airport is also the busiest by passenger movement, with a heavy reliance on international traffic.

‘Double-digit’ international numbers offset domestic decline

According to the release, there was a 0.3% increase in the number of domestic passengers in the last month, to 2.2 million. But the year-to-date performance growth for domestic travel has fallen 1.4% to 11.2 million.

International travel has once again fared better, driven by increased demand and double-digit growth from China, Japan, Malaysia and the US. International traffic grew by 6.3% to 1.3 million people for May. This translated to a slight increase year-to-date, with 2.1% growth to 6.9 million.

Sydney Airport also highlighted a few of their new services, including:

  • A daily service to Kuala Lumpur which will commence in Mid-August this year through Malindo Air.
  • Qantas’ new seasonal Sapporo service will commence mid-December through to mid-March.

Sydney Airport’s Share Price outlook

It’s an impressive turnaround on the year prior in terms of international visitor numbers for the airport, especially given recent fears of a slowdown in Chinese visitor numbers.

However, improved international numbers over the span of a month doesn’t automatically erase the problem of fewer domestic travellers, which has been spurred on by higher domestic fees and continues to be a long-term risk for the company.

The total number of passengers annually is still down 0.1% year-to-date to 18.2 million.

Looking ahead, it’s hoped that the inclusion of the two new flight services will bring in extra traffic and profit, but there’s still a way to go to address decline on a domestic level.

Regards,

Regards,

Lachlann Tierney

For Money Morning

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Lachlann Tierney is a writer for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Ryan is involved in three publications:


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