Amadeus kicking goals in first quarter

Amadeus continues to achieve strong operational performances in Distribution and IT Solutions, reporting an increased revenue of 13.2 percent to €1,120.0 million in the first quarter of 2016.

Total air travel agency bookings rose 2.4 percent to €141.2 million in the Distribution sector, while in the IT Solutions business, Passengers Boarded increased 63 percent to €269.5 million.

Amadeus president and CEO, Luis Maroto commented that the company experienced a strong start to the year, delivering solid financial results and various successful business announcements in both Distribution and IT Solutions.

“We are focused on technology as a means to always serve our customers better and to support long-term growth. We look forward to the rest of the year with confidence.”

Maroto noted the growth for the first quarter of 2016 was driven by underlying strong double-digit growth, combined with the consolidation of Navitaire and the 2015 acquisitions.

Air travel agency bookings were positively affected in the first quarter of 2015 by a one-time seasonality impact linked to the way Topas group bookings were made. This impact reversed in the second quarter of 2015 and the Topas booking dynamics normalised.

Around 75 percent of airline bookings made through the Amadeus system worldwide are with airlines that have a content agreement with Amadeus. Over the first quarter, new contracts or renewals of existing content agreements were signed with 12 carriers including LATAM Airlines Group S.A. (“LATAM”), Virgin Australia and Etihad Airways, whose contract also included expanded rich content capabilities for displaying images for ancillary services such as exit row seating.

A total of 138 airlines have now signed-up to Amadeus Airline Ancillary Services. Amadeus Fare Families Solution, which allows airlines to distribute branded fares, had 36 contracts in place with airlines, including Scandinavian Airlines. 26 customers have now implemented the Fare Families Solution, including Canada’s WestJet.

Furthering commitment to subscribers, in the UK market, Amadeus launched Selling Platform Connect, the world’s first fully cloud-based GDS booking and fulfilment platform, accessible anywhere from any device with internet access and without the hassle of a complicated installation.

Growth in the Low-Cost Carrier (LCC) sector continued with travel agents using the Amadeus system to book with LCC and hybrid carriers in the same way as they do with full-service carriers. This quarter Amadeus saw a 12.4 percent increase in total LCC bookings by travel agencies, compared to the same period last year. Today, more than 80 LCC and hybrid carriers distribute their fares to travel agencies through Amadeus.

AccesRail, an IATA travel partner and content aggregator specialising in intermodal travel, strengthened its commitment to a door-to-door travel future through an extended partnership with Amadeus. Using Amadeus’ Air-Rail Display, travel agents are now able to book 18 rail and bus operators across 26 countries on the same screen as air travel, including Deutsche Bahn’s stand-alone services in Germany and National Express bus routes in the UK. This link allows railways to broaden their reach in a key sales channel and increase revenue.

“We are focused on technology as a means to always serve our customers better and to support long-term growth. We look forward to the rest of the year with confidence,” Maroto concluded.

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