Amadeus reported 1.5 percent year-over-year growth in air bookings during the second quarter, a sign of "a softening in global travel demand."
The second-quarter growth rate was affected by the timing of Easter, without which Amadeus estimates year-over-year bookings growth would have been 2.2 percent. That still is below the 2.5 growth rate seen in the first quarter and the 9 percent growth rate seen in 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 said in its earnings presentation.
Even with that demand moderation, North America was one of the regions where Amadeus reported a modest growth in bookings in the second quarter, up 1.2 percent year over year. The strongest growth for the quarter was in Asia/Pacific, up 10.8 percent, followed by Central, Eastern and Southern Europe, up 5.8 percent.
Second-quarter bookings were down year over year in all other regions, most sharply in Latin America, where they declined 5.3 percent. Bookings in the Middle East and Africa were down 4.8 percent and in Western Europe down 2.2 percent in the second quarter.
Amadeus' air distribution revenue in the second quarter increased 6.1 percent year over year to €786.7 million. Revenue per booking in the quarter was up 7.1 percent year over year, "driven by positive pricing effects, including from renegotiations, new agreements and inflation," according to Amadeus.
The company said it signed 17 new contracts or renewals for airline distribution during the quarter and reported 74 New Distribution Capability agreements signed with airlines as of the second quarter.
In its Air IT Solutions business, Amadeus reported revenue growth of 3.7 percent year over year to €584.8 million during the second quarter. Hospitality and other solutions revenue was up 2.2 percent year over year to €256.3 million. Total group revenue in the quarter increased 4.6 percent to €1.6 billion.
Amadeus reported a profit of €372.1 million in the second quarter, up 11.3 percent from its €334.2 million profit in the second quarter of 2024.
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