Friday, November 6, 2015

Amadeus mum on Lufthansa

Amadeus on Friday was largely silent on whether Lufthansa's Sept. 1 introduction of a surcharge on GDS bookings had impacted the number of bookings made on the airline.

During the company's third-quarter earnings call, CFO Ana de Pro declined comment.

"We are not going to disclose any number related to any individual customer, and therefore, we are not going to give bookings or specific revenues regarding the Lufthansa situation," she said.

De Pro did indicate that Lufthansa's surcharge didn't have a material effect on financial results. In the quarter, distribution revenue increased 14%, to €672.5 million, and information technology solutions grew 19.5% to €315.6 million.

"Our focus on delivering revenue-generating technology to our partners has improved our competitive position in the market, supporting growth in both revenues and profit," CEO Luis Maroto said.

Airline bookings were up in all regions with the exception of the Middle East and Africa, where there was a 1% decline that Maroto attributed to geopolitical reasons.

Maroto noted the growth of airlines offering ancillaries through the GDS. Currently, 129 airlines have signed up for Amadeus Airline Ancillary Services, which allows ancillary distribution in almost all markets around the world. Additionally, several airlines have signed up for Amadeus Fare Families.

"The GDSs are playing a key role in promoting these ancillary services," Maroto said.

In the third quarter, Amadeus agreed to acquire travel technology company Navitaire. The deal is pending European Union approval.


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Sunset on the Gambia River
travel
Image by 10b travelling
The Gambia river near Mako – used for a later afternoon communal wash

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