Amadeus Reports Slowing Airline Bookings Growth in Q2

Amadeus reported 1.5 p.c year-over-year progress in air bookings through the second quarter, an indication of “a softening in global travel demand.”

The second-quarter progress charge was affected by the timing of Easter, with out which Amadeus estimates year-over-year bookings progress would have been 2.2 p.c. That nonetheless is under the two.5 progress charge seen within the first quarter and the 9 p.c progress charge seen within the fourth quarter.

“Global air traffic growth has softened since the beginning of the year, quarter-on-quarter, reflecting its gradual normalization, but also impacted by a growing deterioration in the geopolitical context of several regions, a moderation of in travel demand to and within the U.S. and several events, including airline incidents,” Amadeus mentioned in its earnings presentation.

Even with that demand moderation, North America was one of many areas the place Amadeus reported a modest progress in bookings within the second quarter, up 1.2 p.c 12 months over 12 months. The strongest progress for the quarter was in Asia/Pacific, up 10.8 p.c, adopted by Central, Eastern and Southern Europe, up 5.8 p.c.

Second-quarter bookings have been down 12 months over 12 months in all different areas, most sharply in Latin America, the place they declined 5.3 p.c. Bookings within the Middle East and Africa have been down 4.8 p.c and in Western Europe down 2.2 p.c within the second quarter.

Amadeus’ air distribution income within the second quarter elevated 6.1 p.c 12 months over 12 months to €786.7 million. Revenue per reserving within the quarter was up 7.1 p.c 12 months over 12 months, “driven by positive pricing effects, including from renegotiations, new agreements and inflation,” in accordance with Amadeus.

The firm mentioned it signed 17 new contracts or renewals for airline distribution through the quarter and reported 74 New Distribution Capability agreements signed with airways as of the second quarter.

In its Air IT Solutions enterprise, Amadeus reported income progress of three.7 p.c 12 months over 12 months to €584.8 million through the second quarter. Hospitality and different options income was up 2.2 p.c 12 months over 12 months to €256.3 million. Total group income within the quarter elevated 4.6 p.c to €1.6 billion.

Amadeus reported a revenue of €372.1 million within the second quarter, up 11.3 p.c from its €334.2 million revenue within the second quarter of 2024.

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