AUSTRALIA. Sydney Airport handled 2 million passengers in March, down by -45.1% on the corresponding period last year. International traffic was 700,000, down -47.9%, and domestic traffic was 1.3 million, down -43.4% year-on-year.
For the first 16 days of April, provisional data indicates a -96.1% decrease in international passenger traffic and a -97.4% decrease in domestic passenger traffic.
Sydney Airport said: “We expect to see similar reductions in traffic for so long as current restrictions on travel remain in place. The extent and duration of the downturn in traffic will continue to be dependent to a large extent on the measures taken by governments in response to COVID-19.”
Sydney Airport said in a statement that it was in continuing negotiations with business partners about their tenancies. The company said it would adhere to a National Mandatory Code of Conduct issued by government in early April covering landlord-tenant leasing principles (across all trading channels) during the crisis.
The principles aim to ensure business continuity where possible and quick recovery post-crisis. They note that landlords “must offer tenants proportionate reductions in rent payable in the form of waivers and deferrals,” while “tenants must remain committed to the terms of their lease, subject to any amendments to their rental agreement negotiated under this Code”.
Sydney Airport said: “We note the Federal Government’s announcements in relation to commercial and retail tenants and the associated Code of Conduct. We will adhere to the Code of Conduct and all other relevant guidelines set by government.
“We are working closely with all our retail partners to reach fair and equitable outcomes. Likewise, we are also working with our aeronautical and commercial partners and tenants to reach outcomes that represent a fair and equitable sharing of the pain. Those discussions are currently ongoing, but we note that the government’s Code of Conduct is helpful in progressing negotiations.”
The airport is targeting at least a -35% reduction in operating costs for the next 12 months from 1 April.
Sydney Airport CEO Geoff Culbert said: “The entire industry is hurting but we are all in this together and we are working closely with our airline and commercial partners to make sure everyone has the best shot of making it through to the other side, while continuing to operate the airport as an essential service.
“We remain confident in the strength of our balance sheet and liquidity position, but we will continue to tightly manage liquidity and operating and capital expenditure to reflect the significant reduction in passenger traffic at the airport.”
