Amadeus reported a near 2% rise in travel agency airline bookings in Western Europe in the first half of the year.
Travel technology group Amadeus posted a 14% rise in revenue to more than €2.8 billion for the six months to June and an 11% increase in operating profit to almost €1.2 billion.
The group’s travel agency air bookings worldwide grew 1% year on year to €308 million in the period.
Amadeus combines a global distribution system (GDS) with a significant aviation IT business and a growing presence in hotel distribution and IT.
The company reported a 10% increase in adjusted operating profit year on year to €667 million for the six months
Luis Maroto, Amadeus president and chief executive, reported “strong growth in the first half of the year despite a weaker travel industry”.
He said: “Amadeus’ IT Solutions and Distribution businesses continue to grow [and] we are progressing with our diversification strategy following the acquisition of TravelClick and ICM, enhancing our presence and reach in the hospitality and airport IT segments.”
Amadeus paid $1.5 billion for hotel reservations’ technology firm TravelClick in October last year. It acquired airport IT firm ICM in June.
It noted travel agency air bookings worldwide showed a 1.4% decline year on year in the second quarter of the year, largely due to the timing of Easter which meant fewer working days in April this year than last.
However, the failure of Jet Airways in India in April also had an impact as the carrier’s fares were largely sold via GDS.
Excluding India and the impact of Easter “the travel agency air booking industry grew modestly” in the quarter, Amadeus reported.
Yet it recorded a 4.7% increase in distribution revenue to €1.637 billion in the first half of the year.
The company noted: “Amadeus continued to grow despite the less benign environment. Our bookings in the first half of the year outperformed the industry.”
Alongside the 2% increase year on year in bookings in Western Europe, Amadeus recorded a 14% increase in North America.
But there was a near 1% decline in the Middle East and Africa and 15% decline in Asia Pacific, largely due to Jet Airways ceasing flying.
Amadeus announced the appointment of Champa Magesh as head of its global retail travel agency team this week.
Magesh took over as executive vice president of retail in travel channels and managing director for Europe, the Middle East and Africa, with immediate effect.
She was previously senior vice president for retail travel channels, Asia Pacific, and formerly UK and Ireland managing director.
Ramona Bohwongprasert has taken Magesh’s role in Asia Pacific.
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