Insights

Sydney Airport (ASX:SYD) share price resilient despite plummeting passenger traffic

The Sydney Airport share price has rebounded strongly in November, despite passenger traffic plummeting to a trickle.
The post Sydney Airport (ASX:SYD) share price resilient despite plummeting passenger traffic appeared first on Motley Fool Australia. –

hand holding miniature plane suspended by face mask representing asx travel share price

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is up 26% so far in November. 

That’s despite passenger traffic through the airport remaining a tiny fraction of its pre-COVID levels, as revealed in the company’s latest traffic report for the month of October.

Like most every ASX travel share – think Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) – investors rushed to sell their Sydney Airport holdings in the first months of the global pandemic.

From 17 January through to 19 March, the Sydney Airport share price plunged 48%. But, following the strong performance of the past few weeks, shares are now down less than 19%, year to date.

By comparison the S&P/ASX 200 Index (ASX: XJO) is down just over 2% so far in 2020.

We’ll look at the October traffic figures below. But first…

What does Sydney Airport do?

Sydney Airport Holdings owns a 100% interest in Sydney Airport. The international gateway connects to more than 90 other airports around the globe.

The company is headquartered in Sydney. Its two main business units – Aviation (Sydney Airport) and Leasing & Advertising Opportunities ­– provide aeronautical, retail, property, car rental, and parking and ground transport services.

Sydney Airport shares first began trading on the ASX in 2002.

Sydney Airport share price defies short term gloom

In its October traffic report released this morning, Sydney Airport revealed that the return to normal travel volume looks to be some ways off yet.

The company stated that its total passenger traffic in October was 94.3% lower than in October 2019, with only 225,000 passengers passing through its facility last month.

Not surprisingly, international travel is the most impacted, with international passenger numbers down 97.4%. But the domestic figures were nothing to celebrate yet either. The 187,000 passengers Sydney Airport reported for October represents a 92.6% fall from the year before.

Sydney Airport did report a “modest recovery in domestic traffic in October” which it said came thanks to travel restrictions between New South Wales and South Australia and New South Wales and the Northern Territory being lifted.

It noted that it doesn’t expect passenger traffic to grow strongly until government travel restrictions are eased.

Despite another month of sluggish traffic, investors clearly appear to be looking beyond the gloomy data and towards the eventual reopening of one of Australasia’s most important transport hubs.

In morning trading, the Sydney Airport share price is down 0.5%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Sydney Airport (ASX:SYD) share price resilient despite plummeting passenger traffic appeared first on Motley Fool Australia.

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!