Join our daily newsletter At The Bell to receive exclusive market insights
- ASX 200 listed Sydney Airport has been grappling with fluctuating passenger numbers over the last year, particularly dragged down by decreasing domestic Aussie travellers
- Releasing its half-year roundup today, the company’s total foot traffic of 21.6 million was made up of a 1.9 per cent increase in international travellers – making up 8.3 million alone
- However, a 1.5 per cent decrease in domestic travellers caused the airport’s overall passenger count to decrease by 0.2 per cent by the interim
- Saving grace for the company came from the retail avenue of earnings only trailing air travel by 0.7 per cent
ASX 200 Sydney Airport has had a bumpy year wrangling its passenger numbers to stay in the green, with international and domestic numbers duking it out.
Releasing its 2019 interim results this morning, the airport has shown it continues to rely on a large number of international travellers stepping onto Aussie shores as it struggles to maintain domestic passengers coming through its doors.
Over the half year period, the airport saw a total of 21.6 million jet setters walking through its boarding gates.
Amid this 21.6 million was a strong 1.9 per cent increase of international passengers, making up 8.3 million alone in numbers.
Unfortunately for the travel hub, a 1.5 per decrease in domestic travellers brought the airport’s total number of passengers to a 0.2 per cent yearly decrease.
“Today we announce a solid result for the first half of the year, reflecting continued international passenger growth, robust retail performance, and a deliberate and disciplined approach to cost control,” Sydney Airport CEO Geoff Culbert said.
Geoff attributed the international passengers coming in through a strong flow are from America, India, Vietnam and Japan.
“The diversity of our passenger base reinforces the resilience of this business,” he said.
It’s no surprise the airport’s international traveller base mostly hails from Asia, as previous reports from the company have outlined a particular focus from holidayers from the Asian region.
Earnings before taxation for the company grew 4.1 per cent over the period, attributed from Geoff towards purchases at the airport’s duty free section and specialty stores.
This is clearly indicated from the company’s retail revenue only trailing flight revenue by 0.7 per cent.
“Sydney Airport is a business that continues to perform well across the cycle and this half was no exception,” he said.
“Sydney Airport’s diversity of revenue streams together with disciplined cost control gives us confidence in reaffirming our full year distribution guidance of 39.0 cents per stapled security for 2019, an increase of 4.0 per cent on last year.”
Swept up in the ASX slaughtering today, Sydney Airport’s shares were cut 2.57 per cent – left at $8.16 apiece.
The ASX 200 listed company’s market cap is currently valued for $18.89 billion.
