Sydney Airport withdraws capital expenditure plan

Sydney Airport withdraws capital expenditure plan

With no non-citizens or non-residents allowed into the country, coupled with heightened restrictions on domestic travel, Australia's largest airport is scaling back.

Sydney Airport (ASX: SYD) announced today it no longer expected to implement its previous capital expenditure forecast of $350-450 million in 2020.

The airport's entire capital expenditure program is under review with the objective of only continuing with critical projects and deferring less critical until there is more clarity on the persistence of current travel impacts.

"Last year we demonstrated strong operating cost control. We are accelerating this focus in the current environment, and we are eliminating all discretionary spend in order to keep operational costs to a minimum," the company said.

"This includes working with our airline and other business partners to optimise the safe and secure facilitation of our passengers at a lower cost.

"Based on the information presently available to us we are confident in Sydney Airport's strong balance sheet and liquidity position."

Between Sydney Airport's cash reserves, undrawn bank facilities bond market debt, it has around $2 billion in available funds.

Updated at 10:43am AEDT on 23 March 2020.

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