Skift Take
Amadeus isn’t relying on the business from its next-generation distribution tech for now. It’s up to airlines to choose how they want to use it.
Since American Airlines abandoned its adoption of a next-generation distribution strategy this year, that left some wondering if other airlines may follow suit.
Decius Valmorbida, president of travel for Amadeus — one of the companies providing the tech to help American and other airlines adopt these new strategies — is not worried about the repercussions of the American Airlines retreat.
“I find that it’s going to be a very small impact within the quarter because the overall trend is of adoption,” Valmorbida said Wednesday during an earnings call. “And we’re going to see that continue in the quarters to come independent of American Airlines.”
The company said Wednesday that it generated $3.4 billion (€3.1 billion) in revenue during the first six months of the year.
Amadeus had been steadily growing revenue since before it went public in 2010, until it hit a sharp decline in 2020 because of pandemic-related issues. Revenue for the first half of 2019 was $3 billion (€2.8 billion).
While revenue from air bookings was still slightly below what it was in 2019, Amadeus has made up the difference in other areas, particularly its growing hospitality tech business.