AIRLINES & ALLIANCES

Amadeus Soars in Q3: Asia-Pacific Drives Fastest Booking Growth of the Year

Amadeus IT Group posted a strong third quarter for 2025, reporting a 4% year-over-year increase in global air bookings, marking its fastest quarterly growth rate so far this year. This performance reflects an improvement from the 1.5% growth recorded in the previous quarter, as global travel demand strengthened amid what the company described as a more stable macroeconomic and geopolitical environment.

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Amadeus

Amadeus IT Group posted a strong third quarter for 2025, reporting a 4% year-over-year increase in global air bookings, marking its fastest quarterly growth rate so far this year. This performance reflects an improvement from the 1.5% growth recorded in the previous quarter, as global travel demand strengthened amid what the company described as a more stable macroeconomic and geopolitical environment.

The travel technology giant also saw revenue per booking rise by 4.7%, supported by favorable pricing dynamics, renegotiated contracts, new agreements, and the effects of inflation. As a result, Amadeus’ air distribution revenueclimbed 6.2% year over year to €769.1 million in the third quarter.

Regional Booking Performance

Growth was broad-based but strongest in Asia-Pacific, which continues to be the company’s most dynamic market:

• Asia-Pacific: Air bookings surged 15.3% year over year, accelerating from the 10.8% growth seen in the second quarter. This reflects continued recovery in international travel routes, especially in key markets such as Japan, South Korea, and Australia.

• North America: Growth improved modestly to 1.8%, up from 1.2% in Q2, supported by stable corporate travel demand and steady leisure bookings.

• Western Europe: Bookings rose 1.5%, reversing the 2.2% decline seen in the second quarter, signaling gradual stabilization in the region’s air travel market.

While these three regions account for roughly three-quarters of Amadeus’ total air bookings, performance elsewhere was more uneven:

• Middle East and Africa: Down 0.1%, showing near-flat growth.

• Central Europe: Declined slightly by 0.3%.

• Latin America: Fell more sharply, down 4.9%, amid economic headwinds and currency volatility.

The company cautioned that early October booking trends have moderated relative to Q3, suggesting a potential cooling period ahead.

Business Segment Highlights

Beyond its core air distribution division, Amadeus reported solid performance across its other business segments:

• Air IT Solutions (which powers airlines’ reservation, departure, and operational systems) generated €605.7 million, up 5.3% year over year.

• Hospitality and Other Solutions (covering hotel management and travel software) grew 4.9% to €260.5 million.

• Total group revenue reached €1.6 billion, representing an overall 5.6% increase compared to the same period last year.

Amadeus achieved a net profit of €360.8 million for the quarter, a 5.9% improvement from the previous year — underscoring its ability to convert top-line growth into profitability.

Strategic and Commercial Developments

Amadeus continued to expand its distribution network and strengthen its partnerships during the third quarter. The company signed or renewed 14 air-distribution contracts, including a notable New Distribution Capability (NDC)agreement with Riyadh Air, Saudi Arabia’s emerging national carrier.

This deal brought the total number of airlines with signed NDC agreements to 75, of which 35 carriers’ NDC contentis already available on the Amadeus platform. These partnerships are part of Amadeus’ strategy to modernize airline retailing and provide richer, more dynamic content to travel agencies and corporate clients.

In Asia, Amadeus also secured new agreements with travel management companies such as Corporate Information Travel in Malaysia and UOB Travel in Singapore — reinforcing its presence in the region’s expanding corporate travel segment.

Financial Overview and Outlook

For the first nine months of 2025, Amadeus reported that total revenue rose 6.4% year over year (or 8% at constant currency), while adjusted EBIT increased by nearly 9%, and free cash flow surpassed €950 million.

CEO Luis Maroto said the company entered the final quarter of the year “with confidence,” emphasizing that Amadeus’ growth trajectory remains on track thanks to diversification across regions and products. He highlighted the resilience of travel demand, particularly in Asia, and continued momentum in the firm’s IT and hospitality divisions.

Analysis and Takeaways

Amadeus’ latest results highlight several key trends shaping the global travel-tech landscape:

1. Asia-Pacific is driving the rebound. The region’s double-digit growth suggests that post-pandemic recovery and rising middle-class demand continue to fuel air travel expansion.

2. Pricing power is returning. Revenue per booking rose notably, reflecting Amadeus’ ability to negotiate favorable terms and leverage inflationary pricing trends.

3. Diversification is paying off. Growth across IT and hospitality solutions shows that Amadeus is not solely dependent on flight bookings.

4. Profitability remains strong. The steady rise in profit and cash flow demonstrates efficient cost management amid global uncertainties.

Still, there are cautionary signals: growth in mature markets like North America and Western Europe remains modest, and early Q4 data suggests a potential slowdown in booking momentum. Furthermore, global travel demand remains sensitive to geopolitical tensions, fuel price volatility, and macroeconomic pressures.

Amadeus’ third-quarter performance in 2025 reflects a strong and balanced recovery across its core business segments. The company’s strategic partnerships, technological innovation, and expanding NDC network have positioned it well for continued growth. While short-term fluctuations in travel demand may temper momentum, Amadeus’ diversified business model and solid financial base suggest it is well-placed to sustain profitability and capture further opportunities in the evolving global travel ecosystem.

Source: Amadeus