Amadeus IT Group performance improves slightly in Q3
Amadeus IT Group reported a slight improvement in its third-quarter 2020 performance, driven by domestic travel as restrictions eased. However, the company's overall revenue saw a significant contraction.
Travel technology provider Amadeus IT Group saw a modest improvement in its performance during the third quarter of 2020, aided by a rise in domestic air travel as movement restrictions were lifted in various regions. CEO Luis Maroto noted that air travel agency bookings remained positive, with gross bookings exceeding cancellations for the quarter.
Despite this, the company's revenue for the first nine months of the year contracted by 59.8% to €1.7 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 88.8% to €196.2 million, and the company reported an adjusted profit loss of €214.2 million. Bookings through travel agencies decreased by 82.1% overall.
Amadeus's distribution segment experienced a 76.9% decline in revenue for the first nine months of 2020 compared to the previous year. The third quarter saw an 85.3% drop in this segment, although this marked an improvement from the second quarter's performance. Despite the downturn, Amadeus secured new deals with airlines and airports and expanded its presence in the hospitality sector.
The company is preparing for continued uncertainty in the travel sector due to the second wave of the pandemic. Amadeus is continuing its cost efficiency program and had over €4 billion in liquidity at the end of September to navigate the challenging environment.