Airport’s growth ‘tailwind’

Airport’s growth ‘tailwind’

SYDNEY Airport’s new ceo Geoff Culbert has outlined the “huge macro tailwind” supporting his business as the world’s rapidly rising population looks to international travel.

In his first major address since taking over from predecessor Kerrie Mather four months ago, Culbert today told the airport’s AGM of the surging passenger numbers experienced in 2017 – up 3.6% over 2016 to 43 million, including an additional million international travellers.

He said the solid passenger growth was a key factor in the airport’s rising revenues – which were up 8.7% to $1.48 billion last year – and suggested even greater prosperity was to come.

“In 2017 the world’s population grew to 7.6 billion, with 4 billion air passenger trips – that’s over half the world’s population,” Culbert said.

“By 2036, it is estimated that the population of the world will be close to 9 billion, with the number of air passenger trips climbing to 7.8 billion,” he said.

“As the world’s middle class rises, and the price of airfares decreases, we see millions more people come into the travel market every year.”

Culbert highlighted growth from China and dismissed suggestions it had “capped out”.

“Only 8% of Chinese nationals have a passport, and that’s off a base of 1.3 billion people.”

He also pointed to double-digit growth in travel from countries including South Korea, Indonesia, the Philippines and Vietnam.

India would be a future priority for SYD he said, with currently only one direct service to the country five times a week, despite a similar population to China which has 17 flights.

Source: traveldaily