Amadeus tripled its profits 262.4 million euros in the first quarter of the year, 222.8 percent higher than 81.3 million euros in the same period last year., thanks to the recovery of air travel and the resurgence of tourism, contributed by the end of restrictions in China last December. As reported on Tuesday, the company National Exchange Commission (CNMV), Amadeus’ adjusted profit between January and March amounted to €273.1 million, compared to €95 million in the first three months of 2022, which was 187.6% higher. The company’s ordinary income increased by 43% to €1,311.3 million in the January-March period, thanks to billing increases in the air distribution segments, technological solutions for the airline industry and hotels, and other solutions.
Amadeus CEO Luis Maroto underlined that the company started the year strong, have “solid” operational and financial results in all segments. “Air traffic has improved globally, both domestically and internationally, albeit at varying rates. Asia-Pacific traffic has rebounded particularly well with our bookings up more than 150% in the first quarter and more than 120% boarding in the first quarter. It’s the period of last year,” he added. XTB analysts also point out that the recovery of global air traffic in the first quarter of 2023 and its progress at the national level have boosted Amadeus’ results, according to a memo sent to the media.
Compared to the previous year, EBITDA increased by 72.3% and adjusted profit by 187.6%. This positive development was driven by the strong performance of the Airline Distribution, Airline and Hotel IT Solutions and Other Solutions businesses. During the quarter, Amadeus signed 20 new contracts or distribution contract renewals in Airline Distribution.
Increase in reserves
In the air distribution business, In the first quarter, the number of bookings increased by 32.8% to 121.8 million, or 74.9% of the volume recorded before the pandemic, supported by the development of the sector. Revenues in this market totaled €678.9 million, up 52.2% from turnover between January and March 2022, thanks to the improvement in bookings and the increase in average revenue per reservation.
On the other hand, in technological solutions for the airline industry, The number of passengers boarding the plane reached a total of 409.5 million, an increase of 51.2% compared to the first three months of 2022., but 6.9% less than in 2019 due to continuous improvement in the airline industry and new customer applications. Thus, the turnover in this segment increased by 35.7% in the first quarter to 424.9 million Euros, supported by the development of boarding passengers.
North America is once again the top-performing region. Asia-Pacífico recorded significant growth in the first quarter, representing 31.7% of Amadeus passengers boarding.which makes it the largest region by passenger volume.
Finally, Between January and March, revenue from the hotel and other solutions area amounted to 207.5 million Euros.It means an increase of 31.3% compared to the same period of 2022. Compared to the same quarter of the previous year, double-digit growth rates were recorded in all main income items within the hotels.
“We consider this to be bullish as global air traffic will continue to recover. Both revenue and profit of this company have increased significantly compared to the previous year“The travel and tourism industry will continue to grow and Amadeus is well positioned to take advantage of it,” said XTB analysts, highlighting the success of increased sales initiatives and the signing of new deals. they provide.
After these results the share increased by 1% and is now at 61.80 euros.If titles continue this positive growth path in the coming weeks, they will reach their maximums of the last two years and reach pre-pandemic maximums.