Amadeus kicked off the year with a remarkable rise in profitability, posting a first-quarter profit of 262.4 million euros, up 222.8 percent from 81.3 million euros in the same period a year earlier. The rebound in air travel and the revival of tourism, accelerated by the relaxation of restrictions in China last December, played a pivotal role. In its disclosure to the National Securities Market Commission, Amadeus noted that adjusted profit for January through March reached 273.1 million euros, compared with 95 million euros in the first quarter of 2022, marking an increase of 187.6 percent. Ordinary revenue climbed 43 percent to 1,311.3 million euros, driven by higher billing in air distribution, expansion of technology solutions for airlines and hotels, and other related services.
Amadeus chief executive Luis Maroto emphasized a strong start to the year, describing the results as solid across all segments. He noted that air traffic had recovered globally, with uneven paces by region. Asia-Pacific, in particular, showed a robust rebound, with bookings rising by more than 150 percent and total boarding exceeding 120 percent in the first quarter, compared with the year-ago period. Analysts from XTB echoed the view that the global recovery in air traffic in early 2023, along with national-level improvements, contributed to Amadeus’ favorable numbers, according to a memo circulated to media outlets.
Comparisons with the prior year show EBITDA up by 72.3 percent and adjusted profit up 187.6 percent. This growth was fueled by strong performances in Airline Distribution, Airline and Hotel IT Solutions, and Other Solutions segments. During the quarter, Amadeus signed 20 new contracts or renewed distribution agreements within Airline Distribution.
Increase in Reserves and Booking Activity
In the air distribution segment, bookings climbed 32.8 percent to 121.8 million, reaching 74.9 percent of pre-pandemic levels. Revenues in this market totaled 678.9 million euros, a 52.2 percent rise year over year, supported by higher booking levels and a higher average revenue per reservation.
On the technology solutions side for airlines, passenger volumes reached 409.5 million boarding events, up 51.2 percent from the first quarter of 2022, though still below 2019 figures by about 6.9 percent due to ongoing industry adjustments and the introduction of new customer applications. Revenue from this segment grew 35.7 percent in the quarter, reaching 424.9 million euros as boarding activity expanded.
North America emerged as the leading region for performance once again, while Asia-Pacific posted significant gains in the quarter, accounting for about 31.7 percent of Amadeus’ passenger boarding, positioning it as the largest regional contributor by volume.
In the hotel and other solutions area, revenue for January through March reached 207.5 million euros, up 31.3 percent from the previous year. All major income lines within hotels showed double-digit gains when compared with the prior-year quarter.
Analysts cited a bullish stance on global air traffic recovery, noting that both revenue and profit have risen substantially versus the previous year. They expect the travel and tourism sector to continue expanding, with Amadeus well positioned to capitalize on the ongoing recovery, highlighted as a factor behind the rise in orders and new contracts.
Following the release of these results, Amadeus stock rose about 1 percent, trading around 61.80 euros. If the momentum persists, shares could trend toward multi-year highs and approach pre-pandemic peaks in the coming weeks.