Sydney Airport shelves hotel projects amid A$46 million asset write-down
Sydney Airport has written down A$46.1 million in asset value after postponing several transport and hotel developments as part of a broader strategic reset ahead of releasing its 2045 master plan.
The write-downs, disclosed in the airport’s 2024 annual accounts, are tied to legacy projects initiated before its A$23.6 billion acquisition by IFM Investors and Global Infrastructure Partners in early 2022. Affected developments include a public transport interchange and hotels previously proposed for Ross Smith Avenue, which have since been deferred or reprioritised.
The airport is now revising its ground transport strategy following the demolition of its P1 domestic car park. Chief executive Scott Charlton is also understood to be working on a new freight and property strategy as part of a plan to improve operational efficiency.
A draft of the 2045 master plan is scheduled for public consultation later this year, targeting 80 million passengers by 2050. The current plan, issued in 2019 by former chief executive Geoff Culbert, preceded the COVID-19 pandemic.
Sydney Airport increased its capital investment to over A$586 million in 2024, up from A$420 million in 2023, with upgrades underway at the international terminal and the T2 domestic terminal serving Virgin Australia, Jetstar and Rex Airlines.
“We have a robust pipeline of capital projects which are aimed at delivering a great service for passengers and more efficient operations for airlines,” Sydney Airport’s group executive for planning and delivery Paul Willis said.
“In May, we will commence a $200 million upgrade of the T2 domestic terminal, aimed at getting passengers from kerb to gate in under 15 minutes through the introduction of automated bag drops, self-service check-in kiosks, and next-generation security scanners that speed up processing.”
Fifteen new security lanes at the international terminal are expected by year-end.
Despite rising operating costs and the A$46.1 million impairment, Sydney Airport narrowed its net loss to A$298.2 million in 2024, compared with A$587.6 million a year earlier. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) rose to A$1.47 billion, up from A$1.22 billion, supported by higher passenger volumes and increased revenue from airline fees, retail, parking and ride-share services.
In 2024, the airport processed 16.3 million international passengers—a 12% increase—and 25 million domestic travellers, up 4% year-on-year.
According to the Australian Competition and Consumer Commission, Sydney Airport’s aeronautical services segment remains the most profitable among Australia’s major airports, with revenue, profit margin and asset returns in fiscal 2023–24 “significantly exceeding” those of its peers.
Jonathan Jackson, 10th April 2025
