The nation's biggest airport has revealed the March quarter was its strongest for international travel in its history, despite the outbreak of the US-Israel war against Iran on February 28.
Sydney Airport funnelled 4.57 million passengers through its terminals at Mascot in the city's south, up 5.8 per cent on the same quarter last year.
New Zealand and China were the airport's largest international markets, with passenger volumes increasing by 13.5 per cent and 14 per cent, respectively.
Travel to and from Hong Kong was also strong, up 21.4 per cent, and there was also increased traffic for Shanghai, Seoul and Kuala Lumpur.
Airport chief Scott Charlton said the growth in international traffic was a great outcome given the US war on Iran, which also sent the price of jet fuel soaring and forced many airlines to change their operations.
"Growth across China and broader Asia is increasingly supporting travel into Europe, helping to offset softer conditions in parts of the Middle East," he said on Tuesday.
"This performance reflects resilient demand for travel to and from Sydney and reinforces Sydney Airport's role as the nation's primary international gateway."
Looking ahead to the second quarter, Mr Charlton said the focus for airlines will likely be changes to routes, as they adjust to higher fuel prices and the possibility that the conflict will run through to June, or beyond.
"From a fuel perspective, the outlook remains stable and consistent with government guidance," he added.
"There are no current indications of fuel supply constraints impacting airline planning or near-term operations at Sydney Airport."
On the domestic side, passenger growth was also strong - rising by 2.1 per cent to 6.2 million in the quarter.
Overall, Sydney Airport saw more than 10 million passengers through its domestic and international gates.
''Everything we have seen so far suggests the aviation market continues to demonstrate adaptability and Sydney Airport is well positioned to support growth as conditions evolve,'' Mr Charlton said.
Since the crisis began, Qantas has reduced some domestic capacity and raised fares.
But the carrier, which does not fly to the Middle East, has said it was also seeing more demand for travel to Europe and was redeploying capacity from the US and its domestic network to increase flights to Paris and Rome.
Air New Zealand, Air India, Delta Air Lines, and Lufthansa have also reduced capacity in recent weeks, citing the refining costs of jet fuel which have surged to a peak of around $US120 per barrel from $US20 before the war.
