Sydney Airport (ASX:SYD) share price flat amid 'subdued' traffic outlook

How is the traffic at Sydney Airport?

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published December 20, 2021 4:17 pm AEDT

The S&P/ASX 200 Index (ASX: XJO) has had a sluggish start to this week's trading. The ASX 200 finished the day down by 0.16% at 7,292 points. But the Sydney Airport (ASX: SYD) share price isn't doing too much better.

Sydney Airport shares closed the day at $8.57 each. That's what they opened at this morning. This infrastructure company has been at the centre of the ASX investing world for the past few weeks, as the future of the company is wrangled out.

A fortnight ago, investors got the news that the Australian Competition and Consumer Commission (ACCC) had given the takeover offer from the Sydney Aviation Alliance the green light. Sydney Aviation Alliance (made up of several institutional investors including QSuper and IFM Australia) has bid $8.75 per share for Sydney Airport.

That's an offer which the company has already recommended shareholders vote in favour of. This means that Sydney Airport is one step closer to delisting from the ASX boards and 'going private'.

A man in a dark blue suit walks through an airport past floor-to-ceiling windows with a Qantas plane flying in the distance — Image source: Getty Images

November traffic update highlights Sydney Airport's ongoing struggle

But today, we got some other news out of the company which could be affecting its pre-Christmas trading. Sydney airport released its traffic performance update for the month of November this morning. And it makes for some interesting reading.

The company reported that its total passenger traffic for November 2021 was 498,000 passengers. That remains down 86.7% from the same month in 2019. Domestic patronage fell 82.9% against that benchmark to 407,000, while international travellers were down 93.3% at 91,000.

The company also said that the first 15 days of December show an 86% reduction in traffic compared to 2019, with the domestic figure down 69%.

The Airport also commented on its outlook from here:

The outlook for passenger traffic remains subdued due to tightly controlled inbound international travel, entry requirements and restrictions into key overseas markets, and the impact of the Omicron outbreak.

Perhaps shareholders who have already voted in favour of Sydney Airport's takeover won't be too concerned over these numbers. But it still highlights the ongoing issues that ASX travel companies like Sydney Airport are continuing to face.

At the current Sydney Airport share price of $8.57, this company has a market capitalisation of $23.12 billion. The company hasn't paid a dividend since February 2020.

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