Corporate travel demand returned to three quarters of its pre-pandemic level in June, according to American Express Global Business Travel (GBT).
Amex GBT reported business travel over the three months to June recovered to two-thirds of the pre-Covid level, with transactions at 69% of 2019 and revenue at 64%.
But it noted a sharp improvement through the quarter with transactions in June reaching 76% of the 2019 volume.
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The company announced a net loss of $2 million for the three months and a loss of $93 million for the first half of the year but reported “strong demand despite supply constraints and macroeconomic conditions”.
It noted the recovery in transactions in the SME sector exceeded the overall return of business, reaching 84% of 2019 levels in June.
Amex GBT reported a total transaction value of $6.5 billion in the three months on which it made $486 million in revenue.
Chief executive Paul Abbott described demand for business travel as “very strong” and argued: “The value we deliver to customers only increases in the current conditions . . . of greater travel complexity and rising prices.”
Amex GBT’s acquisition of Egencia from the Expedia Group, announced in May last year and completed in November, added $104 million in revenue although operating costs likewise rose with the inclusion of Egencia’s expenses.
The company listed on the New York Stock Exchange in May following a deal with Apollo Strategic Growth Capital – a special purpose acquisition company (SPAC) – announced in December.
The deal brought $335 million in private investment in public equity (PIPE), including “sizeable investments” by travel technology group Sabre and communications platform Zoom, as well as by investment firms Ares and HG Vora which joined Expedia and investment firm Certares as shareholders.
Abbott noted: “Listing as a public company was a significant milestone and marked the beginning of the next phase of growth for Amex GBT.”
The company was formerly owned by American Express, which sold half its stake in 2014 to a consortium led by Certares.
The company was renamed the Global Business Travel Group following the Apollo deal but continues to trade as Amex GBT.
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