The Sydney Airport (ASX:SYD) share price slumped 5% today. Here’s why

The Sydney Airport Holdings (ASX: SYD) share price was diving today, in what seemed to be a reaction to news within the Federal Budget.
The post The Sydney Airport (ASX:SYD) share price slumped 5% today. Here’s why appeared first on The Motley Fool Australia. –

asx share price falling represented by graph of paper plane trending down

Sydney Airport Holdings Pty Ltd (ASX: SYD) shares were diving today, in what seemed to be a reaction to news within the Federal Budget. By the market’s close, the Sydney Airport share price was trading 4.79% lower at $5.76.

In last night’s budget, the government revised the date by which it anticipates reopening Australia’s borders to non-essential travellers. It now doesn’t expect to see large numbers of international travellers coming or going from Australian airports until mid-2022.

This morning, Qantas Airways Limited (ASX: QAN) responded to the government’s projection by pushing back its plans to fly internationally from Australia.

Let’s take a closer look at the update to Australia’s projected international travel timeline.

International travel off the cards again 

Sydney Airport shares were in the red today after the government advised last night it doesn’t expect to see Australia’s borders substantially open to the rest of the world until the middle of 2022.

The government also extended its vaccination timeline, announcing the rollout will likely not be completed until the end of this year.

As mentioned, in response to the prediction that Australia’s international borders will largely stay shut for another year, Qantas was quick to push back its international flight schedule. Earlier this year, Qantas began selling tickets for international flights taking off as early as July 2021. But today, the airline advised the schedule will now be pushed out to late December 2021. This does, however, exclude trans-Tasman flights.

This also means the majority of usual international flights won’t be taking off from Sydney Airport any time soon.  

Sydney Airport share price snapshot

Last night’s news is yet another blow for the Sydney Airport share price, which has had a poor run on the ASX lately.

Currently, the airport’s shares are down by around 10% year to date. Although, they are still 4.75% higher than this time last year.

Sydney Airport has a market capitalisation of around $16.3 billion, with 2.7 billion shares outstanding.

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 February 15th 2021

More reading

Motley Fool contributor Brooke Cooper 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.

The post The Sydney Airport (ASX:SYD) share price slumped 5% today. Here’s why appeared first on The 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!