Amadeus Notches Steady Growth on Southwest and IHG Deals
Skift Take
Amadeus continued to have strong financial performance in the first half of the year. Trends point to it continuing to be a juggernaut of travel distribution in the near-future.
Investors in travel technology group Amadeus have had a smooth flight. Since the business, which generates a majority of revenue in distributing airfares to travel agencies, went public in 2010, its shares have more than quadrupled in value.
On Friday, Amadeus reported its first-half 2017 financial results. The company has continued to pull off revenue and profit growth despite headwinds in European and Middle Eastern travel due to geopolitical events, such as terrorism, an in-flight laptop ban, a political dispute involving Qatar and its neighbors, and Brexit's impact on British outbound tourism.
The travel technology company has pulled off that feat because its flat fees are not linked to airline profitability or airfare changes, although demand impacts revenue. Amadeus' fee for bookings (per passenger boarded or a similar metric depending on the contract), remains constant, typically, whether a ticket is
