Sydney Airport (ASX:SYD) - CEO, Geoff Culbert
CEO, Geoff Culbert
Source: Sydney Airport
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  • Sydney Airport (SYD) records revenue of $341.6 million for the half year, down 33.2 per cent over the prior corresponding period (pcp)
  • International passengers declined by 91 per cent over the pcp while domestic passengers declined 3.1 per cent
  • In the second half of the year, 12 new luxury brands will join Sydney Airport’s luxury retail precinct with the likes of Louis Vuitton, Dior and Saint Laurent
  • Due to the ongoing COVID-19 lockdown, Sydney Airport hasn’t provided a distribution guidance at this point
  • Shares in Sydney Airport were down a slight 0.26 per cent and were trading at $7.70

Sydney Airport (SYD) has recorded revenue of $341.6 million for the half year, down 33.2 per cent over the prior corresponding period (pcp).

Aeronautical revenue was down 27 per cent over the pcp to $110.8 million while retail revenue was down 73.4 per cent to $27.5 million when adjusted for rental decreases and doubtful debts.

Property and car rental revenue was up 1.1 per cent to $83.5 million when adjusted for rental abatements and car parking and ground transport revenue was down 27 per cent to $27.8 million when adjusted for rental decreases.

As of June 30, Sydney Airport had available liquidity of $2.9 billion, consisting of $500,000 in available cash and $2.4 billion of undrawn bank facilities.

CEO Geoff Culbert said this half year was challenging, particularly due to the ongoing COVID-19 pandemic.

“It was a challenging six months, but we were encouraged to see passenger traffic rebound strongly every time borders were open,” Mr Culbert commented.

“From January to April, we recovered 65 per cent of our pre-COVID domestic passengers and in just over two months between late April and June, trans-Tasman traffic recovered to more than 40 per cent of pre-COVID levels.”

Passengers

Six million passengers travelled in the half year, down 36.4 per cent over the pcp.

International passengers declined by 91 per cent over the pcp while domestic passengers declined 3.1 per cent.

Airline agreements

Due to the uncertainty in traffic recovery, Sydney Airport negotiated short-term agreements with airlines.

An agreement to extend the current aeronautical arrangements for Jetstar domestic and Qantas (QAN) domestic runway and international operations was signed until June 30, 2022.

International airline agreements have been extended by 12 months to June 30, 2022.

Additionally, discussions with Virgin Australia to extend its current domestic aeronautical arrangements are continuing.

Luxury brand signing

In the second half of the year, 12 new luxury brands will join Sydney Airport’s luxury retail precinct with the likes of Louis Vuitton, Dior, Saint Laurent and Prada.

“We are very excited to welcome 12 new luxury brands in 2022, all on long-term deals,” Mr Culbert said.

“The commitment of these brands demonstrates faith in the future of international travel and confidence that Sydney Airport will remain at the heart of Australia’s international aviation network.”

Sustainability

In May, Sydney Airport announced its commitment to reach net zero emissions by 2030.

Outlook

Due to the ongoing COVID-19 lockdown, Sydney Airport can’t provide a distribution guidance at this point.

The market will continue to be updated as more clarity emerges around the timing of the COVID-19 recovery.

“The pathway to the recovery is clear. Governments at all levels are highly motivated to roll out the vaccine, which has now been tied to the lifting of restrictions,” Mr Culbert commented.

“As border restrictions are eased, international and domestic travel will be back, and Sydney Airport will be ready to go.”

Shares in Sydney Airport were down a slight 0.26 per cent and were trading at $7.70 at 1:30 pm AEST.

SYD by the numbers
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