Sydney Airport retail revenues post solid growth in first half

AUSTRALIA. Sydney Airport retail revenues climbed by +5.7% year-on-year in the first six months of 2011, majority shareholder MAp Airports has reported.

Retail revenues hit A$108.4 million (US$117.4 million) in the period. In the second quarter alone Sydney Airport posted retail revenues of A$53.6 million (US$58 million), up by +4.8% on Q2 last year.

Upgrading of the airport’s retail offer continues with the redevelopment of the International Terminal Arrivals area, the airport noted.

Total revenues for the half were A$472.4 million (US$512 million), up by +4.4% year-on-year, with Q2 revenues rising by +4.3% to A$233.6 million (US$253 million).

EBITDA (before specific expenses) in the half climbed by +4% to A$381.8 million (US$413.7 million), against passenger traffic growth of +1.9%.

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MAp and Sydney Airport CEO Kerrie Mather said: “Sydney Airport delivered a solid result, with revenue and EBITDA growth exceeding passenger growth over the period. This is a pleasing outcome when taking into consideration the disruption to the aviation and travel sectors caused by the impact of natural disasters, including a volcanic ash cloud, during the first and second quarters.”

She added: “Looking forward, a new strategy has been developed to re-position Sydney Airport’s car park offering. A variety of promotional deals have been launched to attract both weekend travellers and those looking for affordable and convenient parking during an extended getaway, with up to -60% off regular parking rates.

Sydney Airport will also continue to reorient its focus by collaborating with airline partners on a range of initiatives and differentiated products to improve operational efficiency and unlock its significant growth potential.”

International passenger growth in H1 was mainly driven by Australian outbound and Chinese inbound demand. During Q2 Qantas introduced its four times weekly service to Dallas/Fort Worth while China Eastern Airlines, Garuda Indonesia, Vietnam Airlines and Hawaiian Airlines added frequencies.

Virgin Australia’s alliance with Delta Air Lines was approved by the relevant authorities and it announced another international alliance with Singapore Airlines.


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