Amadeus has tempered its expectations for the year after second-quarter air bookings dipped by 7.6 per cent year over year, due largely to unrest in the Middle East, the company announced on Friday (31 July).
The decline followed a 0.2 per cent decline year over year in the first quarter, with air bookings for the first half of the year down 3.7 per cent, due to "a heightened level of booking cancellations and air traffic disruptions" amid the geopolitical situation in the Middle East.
Revenue per booking was up 5.6 per cent year over year in the second quarter, softening the year-over-year revenue decline in air distribution to 2.4 per cent for the quarter. For the first half of the year, Amadeus air distribution revenue totalled €1.6 billion, down 1.5 per cent year over year but up 1.1 per cent in terms of constant currency, Amadeus reported.
Amadeus said July has shown an improvement in air bookings, with booking remaining largely flat year over year rather than declining. Even so, it now forecasts revenue growth for air distribution to be in the low- to mid-single-digit percentage range this year, compared with expectations of growth in the mid- to high-single-digit percentage range in its earlier forecast.
While its revenue expectations for its Air IT Solutions and Hospitality and Other Solutions divisions have not changed, Amadeus also has adjusted its overall group revenue growth projections to the mid- to high-single-digit percentage range, compared with a forecast of growth in the high-single-digit percentage range at the end of 2025.
"Whilst achieving our original outlook is possible if there is a notable improvement in air traffic in the second half, we have prudently revised our overall outlook based on current [International Air Transport Association] expectations," Amadeus CFO Carol Borg said.
In the second quarter, Amadeus reported that Air IT Solutions revenue increased 5.6 per cent year over year during the second quarter. Hospitality and Other Solutions revenue increased 8.5 per cent year over year in the quarter, spurred by new customer implementations and increased transaction volumes.
In total for the first half of the year, Amadeus reported group revenue of €3.3 billion, up 2.3 per cent year over year and 5.1 per cent in constant currency. The company reported a profit of €700.2 million in the first half of the year, compared with €727.4 million in the first half of 2025.