Amadeus credits domestic travel restart for small financial improvement

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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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