Amadeus revenues halve in early 2021; vaccine programs offer hope

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Amadeus believes "improving traveler sentiment" and the roll-out of vaccine programs around the world will lead to a stronger recovery for the business during the rest of 2021.

The Spain-based IT and distribution provider saw its total revenue figure come in at 50% lower in the first quarter of the year compared to the corresponding three months in 2020.

Its revenue was made of $233.9 million from distribution and $369 million from IT services, down 58% and 46% respectively year-over-year.

EBITDA for the business fell by 85% to $65.6 million in the first quarter.

Bookings through the GDS in the first quarter of 2021 were hit particularly hard in Western Europe, as new lockdown restrictions came into effect after a resurgence of Covid-19 infections.

The region saw travel agency fall by 80%, with Asia Pacific down 64% and overall bookings across the world decreasing by 60%.

The least affected region was North America, coming in with a fall of 43% year-over-year.

Similar drops were found in the numbers of passengers boarded through the Amadeus airline IT services division.

Western Europe experienced a slump of 85% year-over-year in the first quarter, but Latin America saw a decline of 40% and North America at 51%.

Non-air bookings fell by 65% to $6 million.

Overall, Amadeus recorded a loss of $115 million compared to a profit of $143 million in the first quarter of 2020. 

President and CEO Luis Maroto said: "In January, the resurgence of the pandemic brought new movement restrictions in many parts of the world.

"However, as vaccination programs gathered pace in certain regions throughout the quarter, we saw an uptick in air bookings and passengers boarded in March. Volume-wise it was the best performing month since February 2020. Into April, we have seen further improvement. 

"Despite this, we remain cautious as we focus on delivering planned efficiencies and our on-going commercial efforts."

Source: PhocusWire

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