The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is up 26% so far in November.
That's despite passenger traffic through the airport remaining a tiny fraction of its pre-COVID levels, as revealed in the company's latest traffic report for the month of October.
Like most every ASX travel share – think Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) – investors rushed to sell their Sydney Airport holdings in the first months of the global pandemic.
From 17 January through to 19 March, the Sydney Airport share price plunged 48%. But, following the strong performance of the past few weeks, shares are now down less than 19%, year to date.
By comparison the S&P/ASX 200 Index (ASX: XJO) is down just over 2% so far in 2020.
We'll look at the October traffic figures below. But first…
What does Sydney Airport do?
Sydney Airport Holdings owns a 100% interest in Sydney Airport. The international gateway connects to more than 90 other airports around the globe.
The company is headquartered in Sydney. Its two main business units – Aviation (Sydney Airport) and Leasing & Advertising Opportunities – provide aeronautical, retail, property, car rental, and parking and ground transport services.
Sydney Airport shares first began trading on the ASX in 2002.
Sydney Airport share price defies short term gloom
In its October traffic report released this morning, Sydney Airport revealed that the return to normal travel volume looks to be some ways off yet.
The company stated that its total passenger traffic in October was 94.3% lower than in October 2019, with only 225,000 passengers passing through its facility last month.
Not surprisingly, international travel is the most impacted, with international passenger numbers down 97.4%. But the domestic figures were nothing to celebrate yet either. The 187,000 passengers Sydney Airport reported for October represents a 92.6% fall from the year before.
Sydney Airport did report a "modest recovery in domestic traffic in October" which it said came thanks to travel restrictions between New South Wales and South Australia and New South Wales and the Northern Territory being lifted.
It noted that it doesn't expect passenger traffic to grow strongly until government travel restrictions are eased.
Despite another month of sluggish traffic, investors clearly appear to be looking beyond the gloomy data and towards the eventual reopening of one of Australasia's most important transport hubs.
In morning trading, the Sydney Airport share price is down 0.5%.
