BUSINESS NEWS
Amadeus makes €540m profit for first half of year
Amadeus reported a €540 million profit for the six months to June despite air bookings through its global distribution system (GDS) remaining 23.5% down on 2019. Airline bookings in the three
months to June improved to within 22% of the 2019 level and Amadeus reported a profit for the quarter of €278 million. Air bookings in the half year were up 17% year on year and air distribution revenue up 31% to €1.36 billion, leading to a near 12% rise in average booking revenue. Passenger numbers boarding
flights using Amadeus IT rose more strongly, up 37% year on year to just under 904 million in the six months to June and just 4.6 percentage points down on the first half of 2019. In North America, passenger
numbers exceeded 2019’s level by 28% and in the Middle East and Africa by 9%. North America was also Amadeus’s best-performing region for air bookings at 4% above the first half of 2019. Air bookings in Europe remained down on 2019 but were 19% up year on year and Amadeus reported 24% growth in hospitality and payments revenue. The GDS paid out €333 million in shareholder dividends in July.
BA owner IAG posts €1bn profit for three months
Ian Taylor
British Airways parent International Airlines Group (IAG) reported a €1 billion profit for the three months to June and a record first- half operating profit of €1.26 billion. The group’s profit after tax for
the six months was €921 million and chief executive Luis Gallego hailed the “particular outperformance of our Spanish businesses” including “a record operating profit for any quarter” at Iberia of €307 million. However, BA accounted for
almost half of IAG’s operating profit for the six months, contributing €602 million – a turnaround from a €436 million loss the previous year. IAG noted “strong leisure demand in all [BA] cabins but lower levels of corporate demand”. Capacity across the group, which
includes Aer Lingus and Vueling, returned to 94% of the 2019 level and Gallego said: “We aim to be back to pre-pandemic capacity at the end of the year.” He noted: “Customer demand remains strong across the group,
BA has recorded a €602m half-year operating profit
[with] very strong leisure demand across all our airlines and all our cabins . . . compensating for slower recovery in the corporate market.” IAG reported passenger ‘unit
revenue’ for the half year up more than 18% year on year. However, the group warned of
“wider uncertainties” including “the potential impact of geopolitical and macroeconomic volatility on the price of fuel and consumer confidence, as well as the impact of strikes”. It noted: “We are focused on
delivering resilient operations over the summer, reflecting a challenging
operating environment in the UK and parts of Europe.” IAG admitted some of its
operations “are not where we would want them to be”, noting: “French ATC [air traffic control] strikes are affecting most of our airlines, and global supply chain issues are reducing aircraft availability.” However, BA chief executive
Sean Doyle insisted the airline is in “a
much better place” than last summer. O Ryanair reported a €663 million profit for the three months to June, with traffic up 11% year on year and average fares 42% higher.
Heathrow buoyed by traffic rise but bemoans fees cap
Heathrow recorded a pre-tax profit of £279 million for the six months to June despite reporting a headline “adjusted loss” of £139 million. The airport emphasised the
latter figure in its results, reporting
travelweekly.co.uk
“we remain lossmaking due to the CAA setting too low a revenue allowance” in its latest regulatory settlement on the charges airlines pay to use Heathrow. Both Heathrow and major
airlines have appealed to the Competition and Markets Authority over the CAA ruling. The airport handled 37 million
passengers in the half year, with passenger numbers on some days in June and July exceeding 250,000 for
Heathrow
Heathrow’s operating costs
rose 17% year on year. However, its revenue was up 19% on 2019. Chief executive John
the first time since 2019, although numbers overall remained 4% down on 2019 and Heathrow warned: “The cost-of-living crisis is a headwind for second-half demand.”
Holland-Kaye hailed “a great start” to the summer getaway “thanks to close collaboration with airlines and their ground handlers”. European airports association
ACI Europe confirmed Heathrow has re-established itself as Europe’s busiest airport with major rivals lagging in their recovery.
3 AUGUST 2023 71
Shutterstock/Travers Lewis
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