Amadeus reported 2.5 percent growth year over year in air bookings for the first quarter despite a "slowdown in global air traffic" compared with the previous quarter.
The year-over-year booking growth stemmed from "strong commercial success across all regions," particularly the Asia/Pacific region, where bookings were up 10.1 percent year over year, according to Amadeus.
While Amadeus travel president Decius Valmorbida listed U.S. government policies among the factors affecting Q1 air traffic, it was one of several, including weather disruptions, the Myanmar earthquake, the timing of Ramadan and the extra leap day in 2024. Competitor Sabre on Wednesday reported a 3 percent year-over-year decline in air bookings for the first quarter, but Valmorbida said Amadeus has less exposure to the U.S. market, which "is the one that is suffering the most."
"We have Asia growing nicely," he said in an earnings call. "European airlines expect to maintain a certain capacity during the summer. We are watching like everyone else what is going to happen, but we are still projecting growth into what is our addressable market."
On a regional basis in Q1, bookings were up 0.7 percent year over year in Western Europe, up 2.1 percent in North America and up 4.7 percent in Central, Eastern and Southern Europe. Bookings were flat in Latin America, and the Middle East and Africa was the only region to see a decline in bookings in the first quarter, down 6.1 percent year over year.
Like Sabre, Amadeus expects that new agency business and new content will continue to boost it even amid global economic uncertainties. The company reported 12 renewed or signed distribution agreements during the first quarter and New Distribution Capability agreements with low-cost carriers Frontier Airlines and Viva. That brings it to a total of more than 70 NDC agreements signed, with 34 carriers' NDC content currently available through its travel platform, including recently launched IndiGo, Saudia and Kenya Airways.
Amadeus also has begun providing Southwest Airlines content to Expedia Group, the company announced.
Revenue per booking in the first quarter increased 4.8 percent year over year, which Amadeus said stemmed from inflation and "other positive pricing effects, including from renegotiations and new agreements." Total air distribution revenue increased 7.5 percent year over year to €821.3 million for the quarter.
In Amadeus' other units, Air IT Solutions revenue increased 10.9 percent year over year to €551.2 million, and hospitality and other solutions revenue increased 10.5 percent year over year to €259.6 million. Amadeus reported a profit of €355.3 million for the quarter, up 13.3 percent year over year.
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