You are talking about something that is at least 8 years away (possibly much more since it's the federal government that is building western Sydney). Revenue will be much higher in 2026 than it is today and based on its recent trajectory free cash flow could be double what it is now. There is plenty of time for SYD to prepare for that and deleverage (they are already deleveraging thanks to revenue growing much faster than costs) and even then it will be competing with a vastly inferior airport. You talked up Avalon Airport before...the Victorian Government has to pay Jetstar to use it ($12m over ten years), if that's the kinda threat we're dealing with here SYD will be fine.
SYD Price at posting:
$6.82 Sentiment: Buy Disclosure: Held
