Retail boosts Sydney revenues

Nicole Mezzasalma

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The Australian airport’s income from retail grew by 6.6% to A$47m ($44.1m) in the first quarter of 2008

Airport authority Southern Cross Airports Corporation Holdings (SACL) has announced a 6.8% increase in earnings at Sydney airport for the three months to March 31 2008. Total revenue grew by 7.6% to A$200m ($187.5m) in the quarter compared with the previous corresponding period, helped by a 6.6% increase in retail revenue to A$47m.

The company said in a statement that retail revenue “grew in line with passenger traffic because the duty-free contract, which began on November 1 2006, was in its relative infancy and hence operating at minimum rent levels”. It added that since work had started on the redevelopment of terminal one’s departures area, a number of landside and airside stores were now closed for refurbishment. “On completion, the new stores will provide a new retail experience that will appeal to travellers, staff and visitors to the terminal,” the statement concluded.

SACL CEO Russell Balding said the airport had achieved a good result in the quarter based on “continued investments in all of the airport’s businesses”.