Healthy profit and traffic growth made 2016 a good year for Sydney Airport

    Sydney Airport MD and CEO Kerrie Mather has stated (16-Feb-2017) she is very pleased with the airport’s 2016 results, which reflect strong performance from all businesses and the successful execution of a number of key initiatives.

    Sydney Airport reported international traffic growth of 8.9% year-on-year with 1.2 million additional passengers, the strongest in 12 years. Total revenue grew 11%, driven by international passenger growth, investment, retail performance and the incremental T3 contribution.

    Sydney Airport posted an annual net profit increase of 13% to AUD320.9 million for 2016 raising its 2017 dividend guidance after stronger than expected aeronautical and retail revenue.

    The company will pay a full-year dividend of 31¢ per share for 2016.

    Total revenue climbed 11 per cent in the year ended December 31 to $1.365 billion from the year-earlier $1.229 billion.

     

    Passenger numbers up 5% y-o-y for Dec-2016

    Sydney Kingsford Smith Airport passenger numbers for Dec-2016 were up 5% year-on-year. Traffic highlights include:

    Passenger numbers: 3.8 million, +4.8% year-on-year;

    • Domestic: 2.3 million, +1.7%;
    • International: 1.6 million, +9.7%.

     

    Badgery’s Creek remains on the agenda for Sydney Airport

    Western Sydney Airport remains on the agenda with Sydney Airport announcing (16-Feb-2017) that it will continue evaluating Sydney’s new airport opportunity following the Australian Government’s issuance of a notice of intention in Dec-2016.

    Sydney Airport participated in the Government’s consultation process and provided views on a range of matters including airport design, long-term passenger forecasts and the economic viability of a new airport operating on a standalone basis.

     

    Traffic growth and improved customer experience lead Sydney Airport’s strategic priorities

    Sydney Airport has announced (16-Feb-2017) the following strategic priorities and opportunities for 2017:

    Increasing passenger numbers and aircraft movements:

    • Attracting carriers from Asia, particularly China and India;
    • Encourage increased aircraft size and increased flight frequency on existing routes and add new routes;
    • Develop marketing initiatives to increase the profile of Sydney as an international tourist destination.

    Improving the customer experience:

    • Improving the experience at every stage of the journey through superior customer service, operational efficiency and technological innovation.

    Growing the property business:

    • 32.8 hectares of development land is allocated for business activities.

    Building additional capacity and effectively using assets:

    • Balancing activity throughout the airfield, terminals and roads to reduce congestion and improve infrastructure utilisation;
    • Focusing on investments in additional capacity to meet demand from future growth.

     

    Sydney Airport leading A380 hub

    2016 saw Sydney Airport become (16-Feb-2017) the world’s fourth busiest airport for A380 international arrivals. A380 scheduled services represented 17% of international capacity by the end of 2016 with eight carriers currently utilising A380 equipment on Sydney services.

    Continued growth in the Chinese market expected to continue for Sydney Airport

    Sydney Airport noted (16-Feb-2017) continued growth in the Chinese market in 2016. Sydney Airport is the world’s leading airport for Chinese long haul-routes, with seven airlines operating to 14 Chinese cities by Jan-2017. 2016 saw the announcement of six new routes to Chinese cities, reflecting continued demand from China. Chinese residents are now Sydney Airport’s largest foreign inbound passenger market. Growth of the China market received a further boost with the new China-Australia air services agreement in Dec-2016.

     

    Sydney Airport announces 5 year guidance as growth continues

    Sydney Airport announced (16-Feb-2017) a new five-year guidance of USD1 billion for the 2017-2021 period with USD322 million in 2017. Capex is linked to a 4.3% aeronautical price increase from 01-Jul-2017, reflecting an appropriate return on capital invested. Sydney Airport is considering major projects including T1 Pier A, apron and baggage expansion works.

     

    www.sydneyairport.com.au