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- Sydney Airport (SYD) has felt the impact of COVID-19 in its 2020 financial report
- The airport’s total passengers from the second quarter to the fourth quarter was 2.2 million, down 93.4 per cent on the previous corresponding period
- Full year loss after income tax expenses was $107.5 million, down 150 per cent and its revenue of $803.7 million dropped 51 per cent
- The company is not expecting the recovery to be easy but says once borders open, people will be willing to travel
- Additionally, Sydney Airport’s Chairman, Trevor Gerber has retired from the role after being on the board since 2002
- David Gonski will step into the role of Chairman
- On market close, Sydney Airport is up 2.53 per cent and is trading at $6.08 per share
Sydney Airport’s (SYD) 2020 financials has felt the impact of COVID-19 after being in one of the most impacted industries from the pandemic.
As expected, the airport lost a lot of foot traffic. The company’s total passengers from the second quarter to the fourth quarter reached just 2.2 million, down 93.4 per cent on the previous corresponding period.
International passengers declined 77.5 per cent and domestic dropped 95 per cent.
Full year loss after income tax expenses was $107.5 million, down 150 per cent on the previous corresponding period. Its earnings before interest, tax, depreciation, and amortisation of $627.8 million, down 45 per cent.
Sydney Airport reported a revenue of $803.7 million, a decrease of 51 per cent compared to 2019.
“The COVID-19 pandemic delivered a crisis of unprecedented magnitude to the global aviation industry, and Sydney Airport has been right on the frontline, both operationally and financially,” CEO Geoff Culbert said.
“As difficult as the crisis has been, I’m proud of the way we kept the airport open as an essential service and protected the business and everyone who works across the airport precinct,” he added.
Due to the impact of the pandemic, the company will not be able to pay distribution for the 2020 year.
At the end of the financial year, Sydney Airport had a strong balance sheet with $3.5 billion of liquidity.
Geoff says the recovery will not be easy but people are keen to travel when the borders open.
“The recovery won’t be linear, but our experience shows that when restrictions are eased and borders come down, people are keen to travel,” he said.
“With the vaccine rolling out, we are cautiously optimistic that 2021 will see
the industry begin to recover. We take great confidence from our financial and operational response to COVID-19, which puts us in a strong position to manage through to the recovery and make the most of it when it arrives,” he added.
Chairman resigns
David Gonski will replace Trevor Gerber as Chairman at the end of the Annual General Meeting, scheduled for May 21, 2021.
Trevor is resigning from the board after being in the role since 2015 and on the board since May 2002.
“My time on the Sydney Airport Board, and in particular my six years as Chairman, have been one of the highlights of my career,” Trevor said.
“In 2002 the airport welcomed 24 million passengers a year and it has been a privilege to work with my fellow board members and management teams to grow that to more than 44 million passengers in 2019,” he added.
David has been on the board for two and a half years and has served on the audit and risk committee as well as the safety, security and sustainability committee.
“I would like to thank Trevor for the outstanding contribution he has made to Sydney Airport,” David told the market.
“Our purpose at the airport is to make Sydney proud every day – and Trevor has truly done this with his leadership, commitment and service. It has been my privilege to serve with him on the Board and I am proud to succeed him
as Chairman,” he added.
On market close, Sydney Airport is up 2.53 per cent and is trading at $6.08 per share.
