Why is the Sydney Airport (ASX:SYD) share price struggling today?

September was a dire month for Sydney Airport.
The post Why is the Sydney Airport (ASX:SYD) share price struggling today? appeared first on The Motley Fool Australia. –

The Sydney Airport (ASX: SYD) share price is dipping today after the company gave an update on passenger traffic for the month of September.

Over the month just ended, the company saw a significant drop in people landing and taking off from Sydney Airport.

In fact, September brought the lowest level of traffic faced by Sydney Airport since the beginning of the pandemic.

While a drop in airport traffic is an obvious outcome of New South Wales’ recently ended lockdown, and today’s release from the airport is non-price sensitive, some market watchers might be shocked by the apparent impact of travel restrictions.

At the time of writing, the Sydney Airport share price is $8.32, 0.24% lower than its previous close.

Let’s take a closer look at the latest news from what has previously been Australia’s busiest airport.

Sydney Airport share price slides amid traffic update

The Sydney Airport share price is struggling today after the company announced it saw 68% fewer passengers through its gates last month as it did in September 2020.

Only 23,000 people passed through Sydney Airport when travelling domestically last month, while 19,000 international travellers did the same.

For comparison, those same figures came to 25,000 and 26,000 in August 2021.

So far, since the start of 2021, only around 6.1 million passengers have travelled through Sydney Airport’s gates. That’s 38% fewer than had by this point in 2020.

Though, the future looks to be brighter for Sydney Airport and, likely, its share price.

New South Wales’ lockdown ended earlier this month. Perhaps more exciting for the airport’s shareholders, the state has pledged to scrap quarantine for vaccinated international arrivals from 1 November.

Additionally, Sydney Airport is still facing a potential takeover by a consortium of infrastructure investors.

As The Motley Fool reported on Monday, the consortium’s due diligence period has ended, but it may still put its $8.75 per share takeover offer to the airport’s shareholders.

The post Why is the Sydney Airport (ASX:SYD) share price struggling today? appeared first on The Motley Fool Australia.

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More reading

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Sydney Airport (ASX:SYD) share price slides on takeover update

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Why did the Sydney Airport (ASX:SYD) share price have such a great FY22 first quarter?

Motley Fool contributor Brooke Cooper 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.

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