COVID-19 lockdowns and the Sydney Airport (ASX:SYD) share price

ASX travel shares remain vulnerable to new lockdown measures.
The post COVID-19 lockdowns and the Sydney Airport (ASX:SYD) share price appeared first on The Motley Fool Australia. –

The Sydney Airport (ASX: SYD) share price is falling in late morning trade, down 0.51%.

Of course, it’s not just Sydney Airport shares sliding today.

Overnight Aussie time, all the major European and US exchanges fell heavily on renewed investor angst over the delta COVID-19 variant slowing global economic reopening. At time of writing the S&P/ASX 200 Index (ASX: XJO) is down 0.38% as well.

But ASX travel shares, like Sydney Airport, are particularly vulnerable to domestic and international border closures. And this is what the company revealed in its June traffic performance results, released this morning.

What passenger numbers did the airport report?

The Sydney Airport share price is sliding amid wider investor concerns about delays in reopening free travel.

In its monthly June traffic figures, the airport compared the performance to June 2019 – pre-pandemic – rather than June 2020 when much of its operations were already shuttered.

It said that domestic traffic was down 56.8%, to 906,000 passengers, in June compared to the corresponding period in 2019.

International travel, as you’d expect, was down even more. The airport reported a total of 83,000 international travellers in June. That’s 93.6% less than in 2019, when June saw 1.31 million international travellers.

All told, total passenger traffic last month fell 70.9% from the June 2019 figures, to 989,000 passengers.

The company pointed to renewed lockdown measures issued by the New South Wales Government as negatively impacting the final week’s domestic travel figures:

These restrictions have resulted in border closures to NSW limiting interstate travel and a suspension in quarantine-free trans-Tasman travel from 23 June 2021. Prior to this suspension, trans-Tasman passenger traffic had returned to more than 40% of the corresponding period in 2019.

Sydney Airport share price snapshot

Despite edging lower today, the Sydney Airport share price remains up by around 33% over the past month, smashing the 0.1% gains posted by the ASX 200 over that same time.

Shareholders largely have the takeover offer, reported on 5 July, to thank for that big lift. The consortium of investors (including QSuper, IFM Investors and Global Infrastructure Management) offering to acquire all the airport’s shares valued the company at $22.6 billion, or $8.25 per share.

That’s 4.7% above the current Sydney Airport share price of $7.88.

The post COVID-19 lockdowns and the Sydney Airport (ASX:SYD) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sydney Airport right now?

Before you consider Sydney Airport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Broker: Sydney Airport (ASX:SYD) share price won’t hit $8.25 for awhile
ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher

It’s been a great month for the Sydney Airport (ASX:SYD) share price
ASX 200 drops, Woodside down, Sezzle rises

Fresh blow to ASX 200 travel shares as Victoria lockdown looms large

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!