Sydney Airport (ASX: SYD) operates the Sydney, Australia airport. The Company develops and maintains the airport infrastructure and leases terminal space to airlines and retailers.
The company, today on 20 March 2019, has updated about the Traffic Performance for February 2019. The Sydney Airport CEO Geoff Culbert said that the number of International passengers moving through Sydney Airport in February was slightly ahead of the corresponding prior period (pcp) growing by 0.4%. Domestic passenger numbers were down 2.7% on the pcp.
He further stated that the international passenger numbers grew by 0.4%, which was in line with seat growth throughout the period. As indicated last month, the shift in the Lunar New Year buoyed January while impacting the February comparison.
He mentioned that the international passenger growth year to date is 2.9%, representing close to 83,000 additional travellers through the airport. As last year the Lunar New Year shoulder extended into March, so the shift forward in 2019 will impact the March numbers.
The reduced domestic seat capacity (-1.9%) combined with lower load factors (-0.7%) has impacted the February local passenger numbers compared to the pcp. Besides, cancellation rates for the month continue to be higher than usual. Also, the Double-digit passenger growth continues from many Asian markets with South Korea and India growing 18.7% and 11.9% respectively, in February.
Regarding the results for FY 2018, the company reported that the total passengers were up 2.5% to 44.4 million, with international passengers growing 4.7% to 16.7 million. The management feels that year 2018 was an impressive year with both foreign and domestic passenger numbers yet again at record levels.
The Earning Before Interest Tax Depreciation and Amortisation rose by 7.2% on passenger growth of 2.5%. The catalysts behind such result were international passenger growth of 4.7% and a substantial contribution from Retail and Property reflecting new leasing deals, strong duty-free and speciality store performance, and a full trading year from the Mantra and Ibis Budget hotels
As regards the outlook, management feels that 2018 was a successful year for Sydney Airport. International passenger growth remained strong at 4.7% off an ever-increasing base. Efficient investment delivered aviation capacity, improved airport access and enhanced customer experience.
Sydney Airport is a resilient asset which has a proven history of performance and growth across all economic cycles. The company is expected to deliver strong performance across the core business through 2019 while being flexible and adaptable to changing market conditions. Sydney Airport had also provided distribution guidance of 39.0 cents per stapled security for 2019, subject to aviation industry shocks and material forecast changes, which is expected to be more than adequately covered by NOR, reflecting growth across the core businesses and increasingly efficient operations.
On the price-performance front, the stock has posted the YTD return of 10.83%. The company also has posted returns of 4.99% over the past three months. At the time of writing (20 March 2019 AEST 1:47 PM), the stock of the company is trading at a price of A$7.25, down 1.628% during the day’s trade with a market capitalisation of ~A$ 16.63 Bn. The stock opened the day at A$ 7.240 reached the intraday high of $ 7.250 and touched an intraday low of $ 7.130, with an average daily volume of more than 2,557,401. It had a 52-week high price of $ 7.620 and a 52 weeks low price of $ 6.240, with an average volume of, 5,946,222 approximately.
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