Sydney Airport will lower its charges for international airlines next financial year as part of a deal struck at the eleventh hour.
The company charges airlines to use its terminals and runways on a per passenger basis, and those charges made up 42 per cent of its $1.16 billion in revenue in calendar 2014.
After long negotiations with the body representing the majority of international airlines using Sydney Airport, the company has agreed to cut its charges by 18 cents per passenger in the 2015/16 year, to $24.
The charges will then increase by an average of 3.8 per cent each year over the next four financial years.
The deal does not include Qantas and Virgin Australia, with Sydney Airport saying negotiations with each airline are advanced.
The new charges also need to be finalised in contracts with each international airline.
"The new commercial agreement provides the framework for a closer working relationship with our airline partners to deliver an improved experience for passengers, our common customer," Sydney Airport managing director Kerrie Mather said.
The new agreement also includes a five-year investment strategy to improve the airport's capacity and level of service for travellers, Ms Mather said.
Shares in Sydney Airport were up six cents, or 1.2 per cent, at $4.92 at 1230 AEST.
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