Sydney airport has experienced its busiest July on record, boosted by an increase in domestic and international passenger numbers.

The rise in arrivals and departures was driven by increased capacity for both international and domestic airlines, including Scoot, AirAsia X, Emirates, Tiger and Jetstar.

Overall the number of domestic passengers increased by 2.6 percent to 2.1 million and international passengers increased 3.6 percent to 1.1 million for the month of July, according to Sydney Airport chief executive Kerrie Mather.

Ms Mather revealed there was a significant growth in Singaporean (54 percent) and Malaysian (45 percent) nationals arriving in Sydney, with Chinese passengers also continuing to grow at 12 percent for the month.