Sydney Airport Corporation Managing Director and CEO Kerrie Mather reported ‘very strong’ passenger growth for the month of July – +6.7% for international pax on the same month last year, while the airport’s retail sales for the first six months rose by 14.3% to A$162.3m ($128.4m).

 

In fact the new retail has proved so successful that Sydney Airport is now considering options for 10 additional retail stores in T2 Pier B, to be opened in late 2018.

 

‘GREAT START’ TO HY2

Meanwhile, Mather described the July result as ‘a great start to the second half of 2017, with international traffic ‘very strong’ and domestic coming in at +2% contributing to the overall passenger increase of +3.7%.

 

At the same time, Sydney Airport reported that its aforementioned retail sales made a 23% contribution to all revenues in the first half period of 2017, ahead of further revenues from property and car rental (15%) and parking and ground transport (11%), although of these amounts were well behind aeronautical services at 51% – accounting for A$364.2m ($288.2m) in revenue (+8%).

 

HEINEMANN STORE HAS MADE A HUGE DIFFERENCE TO REVENUES

Sydney Airport said its strong retail performance followed the completion of Heinemann’s large duty free offer, plus other shop openings and additional shops that were opened in Pier C

 

Listing the highlights, Sydney Airport said the new T1 and T2 F&B offerings contributed, with the leasing of these and other stores completed by late 2016. The airport is also working towards the ‘staged opening’ of its new ‘Marketplace’ which is due to be completed in the international terminal.

 

Heinemann’s new duty free shop is also delivering growth with ‘standout performance’ in the core categories liquor, perfume and cosmetics. The airport’s three terminals are also now fully leased, although management adds that considering the strong retail demand for space, the airport is now looking to provide more opportunities in future.

 

FASHION PRECINCT SUCCESS

Sydney Airport also points to the new 1,900sq m T1 fashion precinct as complete and ‘showcasing’ 13 global designer brands, ‘with sales outperforming business case’.

 

Meanwhile, back on the subject traffic growth, Mather said: “July’s international result was driven by 5.5% capacity growth and nearly one percentage point increase in average load factors. The strong loads were underpinned by the busy school holiday period and the British and Irish Lions Tour of New Zealand.

 

CHINESE AIRLINES CONTINUE TO GROW

“Sydney welcomes the announcement of its seventh mainland Chinese airline, Beijing Capital Airlines, serving its 15th mainland Chinese city, Qingdao. From 30 October 2017, the airline will operate two services per week with a 222-seat A330-200, adding 46,000 seats annually.

 

“Qatar Airways announced a second daily Doha service, commencing on 12 February 2018 following the very strong performance of their initial daily A380 service. The new service will be operated with a tag to Canberra, on a 358-seat B777-300ER, adding more than 260,000 international seats per year.

 

“Qantas also announced seasonal flights between Sydney and Osaka from 14 December 2017. Qantas will operate three flights per week on an A330-300, generating an additional 10,500 seats on the Japanese market over our summer period. Osaka is currently Sydney’s largest unserved market.”