Sydney Airport marks record international traffic despite Iran war

According to the airport, international growth was “underpinned by increased airline capacity and sustained demand across Asia-Pacific and major long-haul markets” despite the uncertainty in the Persian Gulf resulting from the Iran conflict, which started at the end of February.

It comes after an Airservices report this month revealed that Australia’s air traffic through the Middle East had collapsed by 77 per cent year-on-year from March 2025 to 2026.

“This quarter’s record international growth is a great outcome, particularly given the disruption in the Middle East, where many airlines have faced significant operational impacts since late February,” said Sydney Airport CEO Scott Charlton.

“Growth across China and broader Asia is increasingly supporting travel into Europe, helping to offset softer conditions in parts of the Middle East.

“This performance reflects resilient demand for travel to and from Sydney and reinforces Sydney Airport’s role as the nation’s primary international gateway.”

New Zealand and mainland China were Sydney’s largest international markets for the quarter, up 13.5 per cent and 14.0 per cent respectively year-on-year.

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“Asia‑Pacific destinations continued to account for much of the overall increase in international traffic. Passenger volumes on services to and from Kuala Lumpur increased by 32.3 per cent, while services to and from Guangzhou recorded growth of 38.5 per cent,” the airport said.

“Travel through Hong Kong, Shanghai and Seoul also increased by 21.4 per cent, 7.6 per cent and 5.7 per cent respectively.”

According to Charlton, Q2 is seeing further airline network adjustments due to the geopolitical and fuel environments, though these are focused on “routing changes rather than any wholesale shift in demand”.

“Where capacity changes have occurred, they have been tactical and short term, largely focused on more marginal routes, and we continue to watch for any evidence of a longer-term or structural shift in international or domestic seat capacity,” he said.

“If this occurs, our experience navigating previous global shocks means we are well positioned to respond.

“From a fuel perspective, the outlook remains stable and consistent with Government guidance. There are no current indications of fuel supply constraints impacting airline planning or near-term operations at Sydney Airport.

“We continue to monitor the situation closely. Everything we have seen so far suggests the aviation market continues to demonstrate adaptability and Sydney Airport is well positioned to support growth as conditions evolve.”

Australia currently has 30 days of jet fuel, according to Energy Minister Chris Bowen in a weekend update, which is one day more than when the conflict began.