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.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.