Sydney Airport (SYD)

By Jason Fittler

Sydney Airport (SYD) owns and operates Sydney Airport.

SYD consists of two main business units, Aviation (Sydney Airport) and Leasing & Advertising Opportunities.

Sydney Airport is an Australian international gateway serving 34 international airlines, 9 domestic and regional carriers and 10 dedicated freight carriers. These airlines fly to a network of 97 destinations, 46 international, 23 domestic interstate and 28 regional destinations. 

It is located about eight km south of Sydney’s CBD and transport to the city is available by both road and rail.

Passenger growth through Sydney Airport was soft in June 2014 at just 1.1% over the same month last year.

Both domestic and international growth were muted.

Domestic growth has been soft all year, and June's numbers underscore the trend's persistence.

While international growth slowed considerably to 1.2% in June from 4.7% in the year-to-date. This is partly attributed to the impact of last year's British and Irish Lions rugby tour.

Growth in Australians flying internationally was weak at just 0.3%. Likely reflecting the recent dip in consumer confidence from a relatively subdued domestic economy, and the tougher federal budget.

The surge in visitors from Asia continues, with Malaysia up 35%, India up 17% and China up 13%, all during June.

With retail spending reducing at present across the board it is expected that travel will also reduce.

At the current price SYD is fully priced trading at $4.33.

At present the dividend yield is 5%. Which is ok for those with a long-term holding.

But we expect short-term price weakness as demand continues to slow.  

For more information about Sydney Airport (SYD) please contact us on 07 4771 4577.