Amadeus CFO Sees Drop in Air Travel Bookings Despite Resilient Results
Amadeus Faces Booking Decline Amid Geopolitical and Industry Challenges
By Javi West Larrañaga
May 8 (Reuters) - Spanish travel technology group Amadeus expects air travel bookings to decline in the second quarter as the war in the Middle East and airline strikes in Western Europe hit demand, its finance chief said on Friday.
Second-Quarter Booking Outlook
"We believe that we will still continue to have negative growth in second-quarter bookings," Carol Borg said in a post-earnings call with analysts. "April was better than March, but still in negative territory".
Factors Affecting Booking Trends
The improvement was due to a moderation in the cancellation rates, reopening of the airspace in the region and airlines commenting very positively on demand profiles, she added.
Financial Performance and Guidance
Amadeus delivered stronger-than-expected results on Friday and maintained its full-year guidance despite cancellations and concerns about jet fuel shortages, although Borg said revenue growth in the high single digits would be at the lower end of that range.
Cost-Cutting Measures
The company has implemented cost-cutting measures to better withstand the impact of the war in the Middle East and will continue to do so until the situation eases, Borg said.
Resilience and Cost Discipline
She cited last year's results as an example of the company's resilience and cost discipline, as earnings before interest and taxes outgrew revenues.
Investment Flexibility
"We have some flexibility in our resourcing, particularly in our R&D area, where we can flex up and down to continue to maintain our momentum on investing in the right places at the right time".
(Reporting by Javi West Larrañaga in Gdansk; Editing by Matt Scuffham)
