Amadeus said on Friday that bookings for air travel have begun to recover after a period of disruption linked to the U.S.-Israeli war with Iran, which dented the travel technology group's second-quarter performance. Management reported that cancellations and route disruptions across the region led to a 7.6% fall in quarterly bookings earlier in the day.
Speaking with analysts, CEO Luis Maroto characterized the recent developments as having delivered the most severe effects early on. "Our feeling is that the worst has happened already with all these cancellations, adjustments of routes, adjustment of capacity of the airlines," he said, noting a progressive improvement in bookings since June.
Maroto told the call that the conflict's repercussions have extended beyond the immediate Middle East theatre, affecting bookings in some domestic markets, including the United States. He said airlines reacted to the turmoil by rearranging capacity and raising fares in affected routes, which contributed to the decline in bookings recorded during the quarter.
Despite the drop in bookings, Amadeus reported adjusted second-quarter core earnings of 2672.8 million ( $774.2 million), a result that exceeded analyst expectations based on LSEG data.
Management cautioned, however, that the recent lift in reservations may reflect different underlying dynamics. It remains uncertain whether the uptick represents a catch-up effect from travelers who postponed purchases while adopting a wait-and-see stance, or whether it signals the start of a sustained rebound in demand.
The company's remarks underline the mixed signals facing travel-related markets: an easing of the immediate shock from regional conflict coupled with continuing uncertainty about customer behaviour and airline capacity decisions. For travel technology providers and carriers alike, that ambiguity has direct implications for near-term revenue trajectories and capacity planning.
Context and implications
Amadeus' comments emphasize that operational disruptions - cancellations, route changes and capacity adjustments - were the main drivers behind the quarter's booking decline, and that management is monitoring whether recovery is durable or transitory. The stronger-than-expected adjusted core earnings provide some cushion to the headline bookings weakness but do not eliminate the ongoing uncertainty described by the CEO.