AUSTRALIA. Sydney Airport has recorded a slight -0.7% year-on-year decline in Q2 passenger traffic to 10 million, although growing demand for Asian transit hubs serving Europe helped to soften the impact of the ongoing Middle East conflict.
For the first half of the year, passenger volumes increased +1.5%, supported by continued travel demand to and from Sydney and the strength of the airport’s global route network. International passenger traffic rose +2.1% to 8.44 million, while domestic volumes were up +1% to 12.29 million.
Demand from Asian markets helped offset softer traffic on some Europe-bound routes via the Middle East. Guangzhou, China posted the highest growth during the quarter, with passenger numbers surging +50.5%, while Hong Kong and Kuala Lumpur each jumped by more than +14%.
Strong performances were also recorded in Singapore, Seoul and Tokyo, highlighting sustained demand across Sydney Airport’s key Asian markets.
Domestic passenger traffic maintained its momentum from last year, with 6.09 million passengers travelling through the T2 and T3 terminals during the quarter, while international passenger traffic totalled 3.87 million.
“The results highlight the resilience of demand for travel to and from Sydney and the benefits of a diverse mix of destinations and airline services,” Sydney Airport said.
“When disruption affects one region, passengers and airlines have access to a range of alternative destinations and connections, helping maintain Sydney’s position as Australia’s leading international gateway.”
Key developments in Q2
Sydney Airport continued to improve passenger processing during the quarter through key upgrades at the T2 Domestic terminal, where all seven new CT-enabled security screening lanes are now operational.
The terminal transformation programme has also delivered 15 self-service check-in kiosks and 16 automated bag drops.
Adding to Sydney Airport’s growing network, Starlux Airlines will launch direct flights between Sydney and Taipei in 2027, expanding travel options and regional connectivity for passengers.
Other initiatives to enhance the passenger experience include the roll-out of Fast Track at T1 International and the appointment of Travelex as Sydney Airport’s new foreign exchange partner.
Retail improvements are also advancing, with preparations underway for the opening of The Rocks dining precinct at T2 Domestic, alongside a major travel essentials RFP designed to enhance the experience for international passengers.
Sydney Airport CEO Scott Charlton said: “While conflict in the Middle East affected travel patterns during the quarter, demand for travel to and from Sydney remained resilient.
“Growth across Asia helped offset the impact of Middle East disruption, with strong performance across destinations including Guangzhou, Hong Kong, Kuala Lumpur, Singapore, Seoul and Tokyo.
“The diversity of destinations served from Sydney Airport is one of our greatest strengths. When conditions change in one part of the world, passengers and airlines have options across a broad range of markets and connections.
“With more than 20.7 million passengers travelling through the airport in the first half of the year, demand remains ahead of 2025 levels and reinforces Sydney Airport’s role as Australia’s busiest international gateway.
“We also continued to improve the passenger experience during the quarter, with further upgrades across Terminal 2, strong operational performance, and new airline and commercial partnerships helping improve choice and connectivity for travellers.” ✈
