Amadeus beats profit forecasts, trims 2026 revenue outlook
Amadeus Q2 Performance and 2026 Revenue Outlook
By Javi West Larrañaga and Gemma Guasch
Second-Quarter Results and Analyst Expectations
July 31 (Reuters) - Amadeus beat second-quarter profit expectations on Friday, although the travel technology company trimmed its 2026 revenue outlook after the conflict in the Middle East hit bookings and disrupted air traffic.
Amadeus now expects mid- to high-single-digit revenue growth in 2026, compared with high-single-digit growth previously.
Adjusted Core Profit Figures
The company's second-quarter adjusted core profit was €672.8 million ($774.2 million) and beat analysts' average estimate of €657 million, according to LSEG data.
Impact of Middle East Conflict on Bookings
Booking Cancellations and Air Traffic Disruptions
The turmoil in the Middle East caused an increased number of booking cancellations and air traffic disruptions, leading to a 7.6% decline in quarterly bookings, Amadeus said.
Stock Market Reaction
Shares fell as much as 3.5% at the open before reversing course to trade 1.6% higher by 0756 GMT.
Industry Context and Growth Challenges
Global Travel Environment
Amadeus, which operates the world's largest travel booking system, is facing increased pressure from an uncertain travel environment, with global airline association IATA slashing its passenger demand growth forecast for 2026 from 4.9% to 2.1% last month due to the U.S.-Israeli war with Iran.
Amadeus said almost all regions reported slower growth than in the first quarter, reflecting airline capacity adjustments and lower air traffic.
Business Segment Performance
Revenue growth was led by the company's Air IT and hospitality businesses, offsetting weaker trends in traditional travel distribution as geopolitical tensions weighed on travel demand.
Stock Performance and Additional Information
Despite Friday's gains, the stock remains down about 14% since the beginning of the year.
($1 = 0.8690 euros)
(Reporting by Javi West Larrañaga and Gemma Guasch in Gdansk; editing by Milla Nissi-Prussak)
