Amadeus credits domestic travel restart for small financial improvement


The beginning of domestic air travel ticket sales in some global markets helped Amadeus stall some of the dramatic declines in its financial performance during 2020.

The Spain-based company posted a 60% slump in revenue for the first nine months of 2020 to $2 billion.

EBITDA across the group has fallen by a massive 89% year-over-year during the same period to $231 million.

Revenue from its distribution services is now running at 77% down year-over-year, the company says, with just $653 million taken compared to $2.8 billion over the first nine months of 2019.

The IT division has declined by 36% over the same period to $1.3 billion.

Travel agency sales of air tickets for the first three quarters of 2020 are down by 82% to 80 million.

Other booking volumes (non-air) are faring marginally better with a 52% decline to 24 million.

The other key metric for Amadeus is passengers boarded, with North America and Asia Pacific seeing a smaller decline in year-over-year figures in the third quarter, compared to the second when large swathes of the industry ground to a halt.

The two regions were down 83% and 59% respectively in Q3 (94% and 86% in Q2). Western Europe was down 76% and Latin America fell 77%.  

President and CEO Luis Maroto said: "Travel remained depressed in the third quarter due to the Covid-19 pandemic, although we saw a slight improvement in global air traffic across regions thanks to movement restrictions being lifted in parts of the world.

"This traffic improvement was driven by domestic air travel. As a consequence, our air travel agency bookings remained positive during the quarter, as gross bookings outweighed cancellations."

Source: PhocusWire


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