Amadeus claims resilience against challenges as airline IT grows in APAC

Revenue at Amadeus during 2013 increased by 6.6% year-on-year to Euro 3,103.7 million, with adjusted profit up to Euro 619.5 million.

CEO and president Luis Maroto says the financial results for the Spain-based company show it has “continued to be resilient” in the face of external factors.

He adds:

“Even in the context of slow growth in the wider market, Amadeus continued to outperform the travel distribution industry and reinforce its leading position in the air distribution segment.”

Distribution business update

The distribution business revenue was reported at Euro 2,317.8 million (an increase of 5.3%) and its air travel agency bookings increased by 6.5%, to 443.4 million.

In addition to signing up ten low cost carriers to its distribution network, the company also extended contracts with British Airways, Iberia Express, Air France-KLM, American Airlines, China Airlines, LATAM Airlines Group and Thai Airways.

A total of 23 airlines (including the newly added Lufthansa and Austrian Airlines) distribute their ancillary services through the Amadeus travel agency channel.

EasyJet became the first “light ticketing” (non-BSP) airline in the Amadeus system, a solution that improves the way in which travel agents access and book LCCs.

IT solutions business update

Revenue for this end of the business increased by 10.8% to Euro 785.9 million. And, Passengers Boarded increased by 9.2% to 615.7 million, with a 57.6% rise in Asia Pacific.

Western Europe remained the biggest market for the Airline IT services. However, the biggest region of growth was Asia Pacific, driven by the addition of Asian airlines to Altéa Suite.

At the end of the year, a total of 125 airlines were contracted for both Altéa Reservations and Altéa Inventory.

In an effort to expand aggressively in the hospitality sector, in December 2013, Amadeus acquired US-based hotel IT provider Newmarket International for $500 million.

To enhance the company’s presence in Airport IT, in February 2014, Amadeus acquired the Singapore-based airport technology provider UFIS for an undisclosed fee.

Amadeus claims resilience against challenges as airline IT grows in APAC