Amadeus has reported its financial performance in the first half was severely impacted by the Covid-19 travel shutdown.
Revenue for the first half of the year, ending June 30, contracted by 54.7% to €1,281.2 million. Its EBITDA decreased by 83.6% to €194.1 million, and adjusted profits declined 113.4% to a loss of €89.2 million.
Travel agency bookings fell by 78.6% to 65.9 million. In IT solutions, passengers boarded contracted by 56.2% to 415.2 million.
“The second quarter of the year marked a very difficult moment globally for the travel industry in relation to the Covid-19 pandemic. The large-scale lockdowns across regions had a severe impact on travel, flight scheduling, on air bookings (further worsened by cancellations), and passengers boarding aircraft. Consequently, our revenue, EBITDA and adjusted profit were considerably impacted during the quarter”, said Luis Maroto, president and CEO of Amadeus.
He said Amadeus has seen an increasing number of flights being scheduled since late May and air traffic and bookings have been responding but cautioned that “the situation remains highly uncertain”.
Progress has been made with its NDC programme, however. American Airlines implemented Amadeus Ancillary Services via NDC so it can now offer seat selection and other ancillary content on the travel agency channel. Two other airlines have also connected to the Amadeus Travel Platform and will start piloting the NDC technology through the travel agency channel.
Amadeus is “simplifying its business and customer unit structure by bringing together its distribution and airline IT businesses in a wider transversal and platform-led customer unit”. This is part of its move to “reinforce its financial position to face this crisis with confidence”.
“Amadeus has developed and initiated a comprehensive plan to strengthen its capabilities for the future. This plan involves actions to improve the way we operate, the way we serve our customers and to enhance innovation,” it said in a media statement.
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