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Sydney Airport share price on watch after reporting a decline in passengers

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be one to watch this morning following the release of the airport operator’s latest traffic figures.

How did Sydney Airport perform in June?

Last month was a quieter than normal month for Australia’s busiest airport.

According to the release, Sydney Airport welcomed 2,096,000 domestic passengers through its gates in June, which was a 1.6% decline on the prior corresponding period.

And whilst this was offset partially by an increase in international passengers, the growth in international passengers slowed during the month.

Sydney Airport saw 1,306,000 international passengers use its terminals in June, which was a 1.1% increase on the prior corresponding period.

Combined, the total number of passengers through its gates in June fell 0.5% on the same period last year to 3,402,000.

Calendar year to date, this means that domestic passengers are down 1.5% to 13,301,000 and international passengers are up 1.9% to 8,302,000. This brings the total passengers using Sydney Airport year to date to 21,603,000, which is down 0.2% on the prior corresponding period.

Sydney Airport’s CEO, Geoff Culbert, said: “More than 3.4 million passengers passed through Sydney Airport in June 2019, 0.5 per cent down on June 2018. Sydney’s top five fastest growing passenger groups over the month were Vietnam, Taiwan, Japan, USA and India, all recording double digit growth compared to June 2018. Domestic passenger numbers were impacted by capacity reductions combined with subdued load factors.”

In addition to this, a reduction in the number of visitors from China and the United Kingdom weighed on its international passenger numbers. Chinese passengers fell 1.4% and UK passengers dropped 1.3%.

This news could have an impact on Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH) shares, so it may be worth keeping an eye on them today as well.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. 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.

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