Amadeus’ Market Share Grows

Amadeus’ share of travel agency air bookings grew to 42.3% in the first quarter, up from 39.9% in first quarter 2014. Its air bookings were up 11.4%, to 139.9 million in the quarter. Air bookings grew 5% for the industry as a whole.

Part of the growth for Amadeus came from new business from Orbitz under a new contract that was implemented at the beginning of the year.

Additional new business came from South Korean travel agencies that transitioned to the Amadeus GDS from the old Topas system at the end of third quarter 2014. That move contributed to a 49% increase in air bookings in the Asia Pacific region.

Growing market share
But Luis Maroto, Amadeus’ CEO, said even excluding those two factors, the company’s market share grew.

Air booking volumes declined 1.4% in the Middle East and Africa, and 0.9% in central, eastern and southern Europe. Booking volume has been dragged down by the continuing conflicts in Syria, Yemen, Libya and Iraq, in addition to the clash between Ukraine and Russia.

In Western Europe, Amadeus’ largest market, air booking volume grew 2.1%. The Orbitz deal helped push North America’s volume up 30.1%.

Income and revenue growth
Maroto said 117 airlines have contracted to use the Amadeus Ancillary Services Solution and 76 have implemented it. Nineteen airlines have contracted to use Amadeus’ Fare Families solution, as well.

Amadeus reported net income of €209.9 million (about $235.9 million) for the first quarter, up 9.7% from first quarter 2014. Revenues totaled €989.4 million (about $1.1 billion), up 14% from first quarter 2014.

Revenue from Amadeus’ IT solutions business, whose flagship Altéa system is the largest provider of passenger services systems in the world, grew 24% year-over-year, contributing €267.7 million ($300.9 million).