Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Sydney Airport (ASX:SYD) Share Price Falls On December Update – Is It A Buy?

Sydney Airport Holdings Pty Ltd (ASX:SYD) revealed its December 2018 passenger numbers today, with a 0.1% drop in total passengers when compared to December 2017.

Sydney Airport Holdings Pty Ltd (ASX: SYD) revealed its December 2018 passenger numbers today, with a 0.1% drop in total passengers when compared to December 2017.

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 December 2018 Passenger Update

Total passenger numbers fell by 0.1% in December 2018 when compared to the same month last year. Domestic passengers fell by 2.6%, however international passenger numbers grew by 3.7%.

Sydney Airport said that cancellations due to storms and adverse weather activity impacted the domestic passenger movements for the month.

The year to date performance showed positive numbers across the board with domestic passengers up by 1.2% and international passengers up 4.7%. This brings the total year to date growth to 2.5% when compared to the previous year.

Sydney Airport CEO Geoff Culbert said, “2018 was another record year for Sydney Airport with 44.4 million passengers travelling through our three terminals, an increase of 2.5% compared to 2017. Our strong growth has been underpinned by international capacity increases representing 1.2 million additional seats.”

Is Sydney Airport A Buy?

The market didn’t seem to respond well to this passenger update. The share price has dropped 2.8%, representing the lowest price since early November 2018.

Income investors might find the 5.8% dividend yield attractive. However I would want to see domestic passenger numbers stabilise before considering an investment.

Three out of the last four passenger updates have shown negative domestic numbers growth. I would question whether this is a continuing trend, if it will continue to affect the share price and ultimately Sydney Airport’s profits.

If you’re feeling unsure on Sydney Airport too then the three shares in our free report below could be worth considering for your next investment.

[ls_content_block id=”14945″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content