Amadeus Sees No Impact Yet on Airlines’ Pushback With New Distribution Models
Photo Credit: Amadeus CEO Luis Maroto in his office at the Madrid headquarters in 2016. The company reported its first-quarter 2018 earnings on Friday. Amadeus
Skift Take
For a couple of decades, distribution technology giants like Amadeus dictated contract terms to the airlines. But airline groups are leading a revolt to try to impose a new model on the middlemen. It's too early to say who will get the upper hand.
Airline groups are attempting to rein in the distribution business of Amadeus, the travel technology giant. But the Madrid-based company said Friday that it is not feeling an impact — at least not yet.
During a first-quarter 2018 presentation to investors, Amadeus said it had seen no financial impact from the pushback by airlines against distribution companies, who are trying to get travel agents and online travel agencies to book directly with them.
"We need to manage this evolution very careful," said CEO Luis Maroto of the new deals. But he said there had overall been "a positive outcome of the evolution of the different agreements that we have had with airlines."
Amadeus reported its first-quarter 2018 earnings that showed modest, but steady growth.
Amadeus generated $644 million (€544 million) in earnings before interest, taxes, depreciation, and amortization. It also grew its revenue by 3.1 percent for the period, year-over-year, to about $1.47 billion, or €1.23
