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Sydney Airport share price lower despite solid traffic update

In morning trade the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has drifted lower following the release of its latest traffic update.

At the time of writing the airport operator’s shares are down 0.5% to $8.39.

What did Sydney Airport announce?

Sydney Airport’s terminals were bustling with travellers again in September.

According to the update, the airport experienced a lift in both domestic and international passengers during the month.

A total of 3,651,000 passengers went through its airport last month, up 1.4% on the same period last year. This took its year to date total to 32,771,000 passengers, down 0.1% on the prior corresponding period.

Domestic passenger numbers increased 1.2% on the prior corresponding period to 2,286,000 during the month. This was a major improvement on earlier this year and has reduced its year to date domestic passenger decline to 1.1%.

The airport once again reported an increase in International passengers. Approximately 1,365,000 international passengers passed through its gates in September, up 1.9% on the prior corresponding period.

This means that a total of 12,501,000 international passengers have visited the airport year to date, which is an increase of 1.4% year to date.

Sydney Airport CEO Geoff Culbert said: “Our international passenger performance in September is a continuation of the growth we saw in August. International passenger numbers were up 1.9 percent on September 2018 and growth is holding steady at 1.4 percent year to date.”

“Arrivals from India recorded their second consecutive month of double-digit growth, up 11.2 percent on September 2018 and up 8.4 percent year to date. We’re supportive of Federal Tourism Minister Simon Birmingham’s focus on India which reflects the growth and potential we are seeing. A highlight for September was the air services agreement between Australia and Nepal, which aligns to the strong passenger growth we’ve experienced in recent years. Indonesian passenger growth was another highlight, posting 16.1 percent growth on September 2018,” he added.

In light of this positive update, I think Sydney Airport and Qantas Airways Limited (ASX: QAN) would be good options for income investors along with these highly rated dividend shares.

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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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