Spain's Amadeus beats expectations as Asia-Pacific leads recovery in air traffic
Reuters
Published May 09, 2023 07:37
Updated May 09, 2023 09:41
By Jakub Olesiuk and Matteo Allievi
(Reuters) -A global recovery in air traffic helped Spanish travel booking group Amadeus post a near 200% jump in first-quarter adjusted net profit on Tuesday to beat analysts' estimates, though profits were still below pre-pandemic levels. Adjusted net profit for the three months came in at 273.1 million euros ($300.6 million), compared with 95 million in the year earlier period and 334.7 million euros in the first quarter of 2019. Analysts polled by Refinitiv had expected an adjusted net profit of 241.2 million euros. The travel industry has so far largely avoided the effects of higher interest rates on consumer spending and is on track for a full recovery after China reopened in January following almost three years of COVID-19 restrictions.
"Asia-Pacific traffic recovered particularly well, with Amadeus' bookings growing above 150% and passengers boarded above 120% in the first quarter compared to the same period last year," Chief Executive Luis Maroto said in a statement.
Western Europe was the second-strongest market behind Asia-Pacific in terms of airline bookings, with an increase of around 44% year-on-year. Amadeus' main focus is air travel.
The company did not update its latest guidance from February, when it predicted revenue growth between 20% and 22.5% for the full year 2023.
The group's shares were up 0.8% at 0805 GMT. The company is optimistic about bookings for this month, as it said recovering travel volumes should continue to support its performance this year. "We believe that the figures are on a positive recovery path that will take them back to pre-pandemic levels by the end of 2023 or early 2024," Bankinter analysts said in a note.
($1 = 0.9084 euros)
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Written By: Reuters
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