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The Sydney Airport Holdings Pty Ltd (ASX: SYD) First half 2021 results were released last week. Among them were several pieces of information that could affect the actions of its travel counterpart ASX. Flight Center Travel Group Ltd (ASX: FLT).
Right now, Flight Center shares are trading at $ 13.74 each. The travel agency group is expected to release its results for 2021 on Thursday.
Let’s take a look at what Sydney Airport’s half year results could mean for Flight Center shares.
What Can Flight Center Investors Get From Sydney Airport?
Flight Center shares will be in the spotlight on Thursday as the market anticipates the release of the company’s FY21 results.
While we wait, let’s take a look at the revenue at what is normally Australia’s busiest airport to see if they provide any insight into the woes of the travel industry.
Sydney airport profits included dire numbers. Here’s a look at what the airport reported:
- A net loss after tax of 81.7% higher than that recorded in the first half of 2020
- A 36% drop in aeronautics revenue
- 6 million travelers passed through the airport – 36.4% less than the previous corresponding period (pcp)
- Sydney Airport saw 91% fewer international passengers than the PCP
As you can see, international travel to and from Australia’s largest airport notably fell in the first half of 2021 compared to pcp. Of course, Australia’s international borders closed in the middle of the first half of 2020.
However, the actions of Flight Center could be safer than this figure suggests. Sydney Airport said it only registered a 3.1% drop in domestic travel for the 6 months ended June 30.
Additionally, Sydney Airport CEO Geoff Culbert said domestic traffic has rebounded well with each reopening of Australia’s internal borders. In addition, before New Zealand once again closed its borders with Australia, trans-Tasman traffic was back to more than 40% of its pre-COVID levels.
This seems to suggest that many Australians (and New Zealanders) were traveling as best they could in the first half of 2021.
All eyes will be on Flight Center – and its actions – on Thursday. The market will likely wait and see if the travel agent has experienced the same strong domestic travel industry throughout FY21.