Is the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price a buy after revealing its July 2019 traffic numbers?
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’s Disappointing July 2019
The airport operator reported that in July 2019 domestic passengers traffic numbers fell 0.7% to 2.39 million when compared to July 2018.
International passengers dropped 2.2% to 1.46 million people, resulting in total passengers falling by 1.2% to 3.85 million people.
Sydney Airport CEO Geoff Culbert said: “The market continues to be subdued, but there are some exciting developments on the horizon. Both Qantas Airways Limited (ASX: QAN) and LATAM Airlines have announced they will be increasing direct services to Santiago, which is really great news for the emerging South American market.”
I’m concerned that continued passenger falls could lead to a halt of earnings growth for Sydney Airport, as some revenue is volume based. Plus, the share price doesn’t reflect the slowly deteriorating passenger numbers.
I think there could be better opportunities on the ASX, such as the reliable shares in the free report
below.
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