AUSTRALIA. Sydney Airport today reported half-year revenue of A$341.6 million (US$243.6 million), a fall of -33.2% year-on-year and -57.1% compared to the same period in 2019. Passenger traffic of 6 million declined by -36.4% compared to H1 2020 (international -91%) and -72.4% compared to 2019.
Half year retail revenue reached A$87.4 million (US$62.3 million), or A$27.5 million (US$19.6 million) when adjusted for rental abatements and doubtful debts, which was down by -73.4% on an adjusted basis versus H1 2020. The company posted a loss after tax of A$97.4 million (US$69.5 million) for the half year (A$53.6 million in H1 2020), with EBITDA of A$210.8 million (US$150.3 million), down -29.8% on a year earlier.
Sydney Airport Chief Executive Officer Geoff Culbert said: “It was a challenging six months, but we were encouraged to see passenger traffic rebound strongly every time borders were open. From January to April, we recovered to 65% of our pre-COVID domestic passengers and in just over two months between late April and June, trans-Tasman traffic recovered to more than 40% of pre-COVID levels. “We’re optimistic that this trend will repeat itself as the vaccine programme gains momentum and we see a sustained easing of restrictions.”
He added: “The pathway to the recovery is clear. Governments at all levels are highly motivated to roll out the vaccine, which has now been tied to the lifting of restrictions. As border restrictions are eased, international and domestic travel will be back, and Sydney Airport will be ready to go.”
Within retail, some 59% of stores were trading as of the end of June, compared to 41% last December. 73% of contracted rents were abated in the first half (excluding duty free), with 97% occupancy of tenanted spaces.
As reported, the airport company has announced an agreement with powerhouse French luxury brand Louis Vuitton to anchor a reinvigorated luxury retail precinct in the T1 International terminal from next year. Other brands to be introduced for the first time at the airport include Saint Laurent, Dior, Moncler, Loewe, Celine, Bottega Veneta, Prada, Balenciaga and Gentle Monster, with two more in final negotiations. Each of these brands has agreed a six-year lease to 2027.
In addition, Sydney Airport announced plans to develop 100 hectares of land for a mix of uses.
Sydney Airport today also reported on July traffic, with just 102,000 passengers using the Australian gateway, down by -67.9% year-on-year and -97.4% compared to July 2019.
International and domestic passenger numbers were hit by the extension of the stay-at-home orders issued by the New South Wales government on 25 June. The restrictions have resulted in continued border closures, limiting interstate travel and suspending trans-Tasman travel.
