July 31, 2020 / 8:19 AM / in 13 days

UPDATE 2-Travel technology firm Amadeus reports smaller-than-expected loss

 (Adds share price, analyst comment)
    By Anita Kobylinska
    July 31 (Reuters) - Spanish travel technology firm Amadeus'
         reported its first loss in a decade in the second
quarter when airlines around the world were grounded due to the
COVID-19 pandemic, but the loss was less than expected.
    Amadeus, the world's biggest provider of booking services,
reported a 231 million euro ($274.57 million) loss in April to
June, compared to a 305 million euro loss forecast by analysts
in a Refinitiv poll.
    Its shares were trading flat by 0805 GMT after an initial
modest rise.
    Mirabaud Group analyst Gonzalo De Cueto said the group had a
strong financial position with 4.1 billion euros in liquidity
and had announced a plan to cut 250 million euros of fixed costs
from 2020 until 2021.
    The group said its air travel agency net bookings in April
and May were negative, as the number of cancellations exceeded
gross bookings.
    "Since late May, we have begun to see an increasing number
of flights being scheduled, and air traffic and bookings have
been responding," President and Chief Executive Luis Maroto said
in a statement.
    Amadeus' earnings are strongly tied to the number of
bookings it handles, as the company charges a fee for every
reservation made on its platforms. About a fifth of its revenue
comes from its IT hospitality business and non-air bookings.
    It said its travel agency air bookings slumped 113% in the
quarter, while the number of passengers boarded via its IT
business suffered a contraction of 94%.
    Amadeus said revenue fell 82% to 259.5 million euros in
second quarter. Analysts polled by Refinitiv had predicted an
even deeper slump.

    ($1 = 0.8408 euros)

 (Reporting by Anita Kobylinska, Editing by Inti Landauro and
Edmund Blair)
  
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