The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is rising, here’s why.
Sydney Airport Holdings is the company that operates the Kingsford Smith Airport, it currently has a 99-year lease on the airport but it will revert back to government ownership at the end of this century. According to Sydney Airport, it generates $30.8 billion in economic activity a year, which is equivalent to 6.4% of the NSW economy.
Sydney Airport May 2019 Passenger Numbers
Sydney Airport announced its passenger numbers for May 2019 this morning.
According to Sydney Airport, domestic passengers increased by 0.3% to 2.22 million people. However, year to date (YTD) domestic passengers have fallen 1.4% to 11.2 million people.
International passengers were better, showing growth of 6.3% to 1.29 million people for the month. YTD international passengers are up 2.1% to 7 million people.
Looking at the individual countries in May 2019, China passengers grew by 13.6%, USA passengers went up by 14.5%, Japanese passengers increased by 12.5%, Philippines passengers grew by 9.8% and Malaysia passengers increased by 15.3%.
Sydney Airport CEO Geoff Culbert said: “The strong international passenger growth in May was driven by increased demand and subsequent load factor increases across most destinations.
“We continue to have a diverse nationality mix coming through Sydney Airport. In May, we saw double-digit growth from Malaysia, the USA, Greater China and Japan.”
New Sydney Airport Flights
Sydney Airport announced that Malindo Air will commence a daily service from Kuala Lumpur via Denpasar in mid-August, operating a 162 seat B737-800.
The Qantas Airways LImited (ASX: QAN) seasonal Sapporo service will commence from mid-December with a 251 seat A330-200 aircraft operating three times per week through to late-March.
Is Sydney Airport A Buy?
The Sydney Airport share price is up 2.3% in response to this and I’m not surprised, the numbers are much better than they have been in recent months. But I wouldn’t think that everything is hunky dory after one month of positive passenger movements.
Although it has a fairly attractive dividend yield I think it is valued too highly when there are shorter and longer term risks like economic conditions and an upcoming second Sydney Airport.
I’d rather invest in the reliable and proven ASX shares in the free report below instead of Sydney Airport.
[ls_content_block id=”14945″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
