The Sydney Airport (ASX: SYD) share price is on the rise today, up 3.37% in morning trade. At the time of writing, the Sydney Airport share price is at $6.13.
We take a look at Sydney Airport's full-year results below.
Image source: Getty Images
What full-year financial results did Sydney Airport report?
ASX investors have driven up the Sydney Airport share price in early morning trading.
This comes after the company reported a huge drop in traffic, with 11.2 million passengers in 2020. Altogether, this figure represents a 74.7% decline year-on-year.
Passenger numbers closely tracked the onset of the global pandemic, with total passengers in the first quarter of 2020 down only 18% on the prior corresponding quarter (pcp). Then, as international and domestic travel locked down during the rest of the year, Sydney's total passenger numbers plummeted. Overall, down 93.4% in the second quarter to the fourth quarter, compared to the same 9 months of 2019.
International passenger numbers fell slightly more than domestic traffic, down 77.5% and 72.9% respectively.
Sydney Airport reported a $107.5 million full-year loss after income tax expense. Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 45% year-on-year to $627.8 million.
With revenues down, the company pursued cost savings, cutting operating costs 32.3% compared to the prior corresponding period and reducing capital investment. It had $3.5 billion of liquidity as at 31 December 2020.
Sydney airport will not pay a dividend for 2020.
"A crisis of unprecedented magnitude "
Commenting on the year gone by, Sydney Airport CEO, Geoff Culbert said:
The COVID-19 pandemic delivered a crisis of unprecedented magnitude to the global aviation industry, and Sydney Airport has been right on the frontline, both operationally and financially…
We moved quickly to control the things that were in our control and put ourselves in a position to manage the unpredictability and volatility that became our 'new normal'. The actions we took, combined with the COVID-19 vaccines rolling out, mean we have laid the foundation for our recovery through 2021 and beyond.
Looking ahead, Culbert added, "The recovery won't be linear, but our experience shows that when restrictions are eased and borders come down, people are keen to travel. With the vaccine rolling out, we are cautiously optimistic that 2021 will see the industry begin to recover."
Sydney Airport share price snapshot
The Sydney Airport share price has fallen and risen alongside the spread of the pandemic and subsequent announcements of effective vaccines.
Shares plunged more than 43% from late February 2020 into late March as travel restrictions took hold. When multiple promising vaccines were announced, shares surged 27% from 30 October through to 17 November.
Year-to-date the Sydney Airport share price is down 5%. That compares to a 2% gain on the S&P/ASX 200 Index (ASX: XJO).
