Growth in travel agency bookings boosts Amadeus profits

Amadeus saw adjusted profit rise by 9% to €557.2 million in the first nine months of the year.

Amadeus saw adjusted profit rise by 9% to €557.2 million in the first nine months of the year.

This was based on an increase in revenue of 9.4% to €2.585 billion, as total air travel agency bookings grew by 4.5% to 356.2 million.

These bookings grew 4% in the third quarter of 2014, an acceleration on the 2.6% growth reported in the first six months of the year.

Amadeus signed a “breakthrough” distribution deal with Ryanair in the quarter to bring its fares and ancillary services to agency subscribers for the first time in more than a decade.

President and chief executive, Luis Maroto, said: “Amadeus’ core businesses continued to show strength during the third quarter.

“The partnership with Ryanair is a landmark deal that underlines the company’s growth commitment in the low-cost and hybrid carriers´ segment.

“Travel agency bookings in this area have increased 17% in 2014, maintaining the fast growth rate registered in recent years.

“Overall, Amadeus’ market share in air travel agency bookings has again increased reaching 40.4%.”

The Asia Pacific region continued to be the main growth driver in the Airline IT business, he added.

“Passengers boarded with airlines using the Altéa Suite in the region now represent over 22% of total passengers boarded, a figure that will continue to expand in the future with additional airlines’ migrations such as Japan Airlines,” said Maroto.

Passengers boarded will also see significant growth in the US, with the future migration of Southwest domestic flights to the Altéa Platform.

“Furthermore, our strategy of growth and diversification into new IT areas is already bearing fruit: the acquisitions of Newmarket International (hotel IT) and UFIS (airport IT) are now contributing positively to our business and to the execution of our strategy.

“In the payments area, an important milestone was reached with the agreement signed with UnionPay International – the Chinese and largest card scheme worldwide with over 4.3 billion cards in circulation – to integrate its cards into the Amadeus Payment Platform.”