Amadeus has tempered its expectations for the year after
second-quarter air bookings dipped by 7.6 percent year over year, due largely
to unrest in the Middle East, the company announced Friday.
The decline followed a 0.2 percent decline year over year in
the first quarter, with air bookings for the first half of the year down 3.7
percent, due to "a heightened level of booking cancellations and air
traffic disruptions" amid the geopolitical situation in the Middle East.
Revenue per booking was up 5.6 percent year over year in the
second quarter, softening the year-over-year revenue decline in air
distribution to 2.4 percent for the quarter. For the first half of the year,
Amadeus air distribution revenue totaled €1.6 billion, down 1.5 percent year
over year but up 1.1 percent in terms of constant currency, Amadeus reported.
Amadeus said July has shown an improvement in air bookings,
with booking remaining largely flat year over year rather than declining. Even
so, it now forecasts revenue growth for air distribution to be in the low- to
mid-single-digit percentage range this year, compared with expectations of
growth in the mid- to high-single-digit percentage range in its earlier
forecast.
While its revenue expectations for its Air IT Solutions and Hospitality
and Other Solutions divisions have not changed, Amadeus also has adjusted its
overall group revenue growth projections to the mid- to high-single-digit
percentage range, compared with a forecast of growth in the high-single-digit
percentage range at the end of 2025.
"Whilst achieving our original outlook is possible if
there is a notable improvement in air traffic in the second half, we have
prudently revised our overall outlook based on current
[International Air Transport Association] expectations," Amadeus CFO
Carol Borg said.
In the second quarter, Amadeus reported that Air IT
Solutions revenue increased 5.6 percent year over year during the second
quarter. Hospitality and Other Solutions revenue increased 8.5 percent year
over year in the quarter, spurred by new customer implementations and increased
transaction volumes.
In total for the first half of the year, Amadeus reported
group revenue of €3.3 billion, up 2.3 percent year over year and 5.1 percent in
constant currency. The company reported a profit of €700.2 million in the first
half of the year, compared with €727.4 million in the first half of 2025.
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