Sydney Airport reports first half revenue and earnings lift

written by australianaviation.com.au | August 21, 2014
Road works around Sydney's T1 are designed to provide a smoother transport flow around the terminal.
Sydney Airport’s international terminal T1.

Sydney Airport has reported a rise in first half revenue and earnings amid growth in international passengers.

Revenue at Australia’s busiest airport rose 5.7 per cent to $568.4 million in the six months to June 30 2014 compared with the prior corresponding period, Sydney Airport said in a regulatory filing to the Australian Securities Exchange on Thursday.

Earnings before interest, tax, depreciation and amortisation rose 6.1 per cent to $459.5 million.

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“The first half saw continued growth and momentum across all of Sydney Airport’s businesses, delivering and improved customer experience and strong returns for investors,” Sydney Airport chief executive Kerrie Mather said in a statement.

Sydney Airport handled 18.6 million passengers in the six months to June 30, up 2.3 per cent from a year ago.

The number of international passengers rose 4.7 per cent to 6.4 million on the back of strong growth from countries in Asia, as well as an improvement from traditional markets such as the US, UK and France.

“International seat growth for the half of 2.9 per cent was a key driver of the above trend passenger growth, demonstrating that travel demand significantly outperformed market capacity growth,” Sydney Airport said.

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While domestic passenger numbers rose by a more slender 1.2 per cent to 12.2 million in the half, Sydney Airport said conditions were improving.

“The domestic market in the near tearm is likely to continue seeing load factor improvement as previous capacity growth is absorbed,” Sydney Airport said.

“Within the market we expect to see a continuation of the LCC growth trend based on the full year effect of route announcements to date from Tiger and Jetstar.”

The airport said it spent $95.5 million in the half on capital works, including a new baggage belt to enable the more efficient handling of larger aircraft such as the A380, an expanded early bag store and sorting facility, widening taxiways at Terminal T2, works on the apron and on more high intensity approach lighting.

The spending was in line with the $1.2 billion earmarked for capital expenditure in the five-year period between 2014 and 2018.

“Sydney Airport is well positioned to capture future traffic growth and commercial opportunities, combining our disciplined investment evaluation with a strong balance sheet and continued innovation,” Sydney Airport said.

Sydney Airport said it had shortlisted three operators to run the airport’s Duty Free shops from February 15, when the current contract expires.

A decision on the winning tender would be made before the end of calendar 2014, the airport said.

Sydney Airport executives were due to hold a results presentation at 1100 (Sydney time).

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