Sydney Airport (ASX:SYD) share price flat amid ‘subdued’ traffic outlook

How is the traffic at Sydney Airport?
The post Sydney Airport (ASX:SYD) share price flat amid ‘subdued’ traffic outlook appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) has had a sluggish start to this week’s trading. The ASX 200 finished the day down by 0.16% at 7,292 points. But the Sydney Airport (ASX: SYD) share price isn’t doing too much better.

Sydney Airport shares closed the day at $8.57 each. That’s what they opened at this morning. This infrastructure company has been at the centre of the ASX investing world for the past few weeks, as the future of the company is wrangled out.

A fortnight ago, investors got the news that the Australian Competition and Consumer Commission (ACCC) had given the takeover offer from the Sydney Aviation Alliance the green light. Sydney Aviation Alliance (made up of several institutional investors including QSuper and IFM Australia) has bid $8.75 per share for Sydney Airport.

That’s an offer which the company has already recommended shareholders vote in favour of. This means that Sydney Airport is one step closer to delisting from the ASX boards and ‘going private’.

November traffic update highlights Sydney Airport’s ongoing struggle

But today, we got some other news out of the company which could be affecting its pre-Christmas trading. Sydney airport released its traffic performance update for the month of November this morning. And it makes for some interesting reading.

The company reported that its total passenger traffic for November 2021 was 498,000 passengers. That remains down 86.7% from the same month in 2019. Domestic patronage fell 82.9% against that benchmark to 407,000, while international travellers were down 93.3% at 91,000.

The company also said that the first 15 days of December show an 86% reduction in traffic compared to 2019, with the domestic figure down 69%.

The Airport also commented on its outlook from here:

The outlook for passenger traffic remains subdued due to tightly controlled inbound international travel, entry requirements and restrictions into key overseas markets, and the impact of the Omicron outbreak.

Perhaps shareholders who have already voted in favour of Sydney Airport’s takeover won’t be too concerned over these numbers. But it still highlights the ongoing issues that ASX travel companies like Sydney Airport are continuing to face.

At the current Sydney Airport share price of $8.57, this company has a market capitalisation of $23.12 billion. The company hasn’t paid a dividend since February 2020.

The post Sydney Airport (ASX:SYD) share price flat amid ‘subdued’ traffic outlook 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 August 16th 2021

More reading

What’s going on with the strange Newcrest (ASX:NCM) share price today?

These 3 ASX 200 shares are topping the volume charts on Monday

What experts are saying about the Woolworths (ASX:WOW) share price in 2022

ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles

5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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!