(Adds details of cash position, CFO comments)
Nov 6 (Reuters) - Spanish travel booking group Amadeus said on Friday it expects to burn through 50-100 million euros a month keeping its head above water as travel restrictions remain in place to stem the COVID-19 pandemic.
The world’s biggest provider of booking services, which had available cash of 2.45 billion euros on Sept. 30, also said it expects to cut some 550 million euros ($651 million) of fixed costs in 2021 to contain the damage.
Amadeus’ travel agency air bookings tumbled 90% in the July to September period year-on-year, and the number of passengers boarded via its IT solutions business shrunk 75% as travel remained depressed in the third quarter.
The group reported a 125 million euro ($148 million) adjusted loss in the quarter compared with a year ago profit of 323 million euros, though the loss was narrower than 231 million euros in the second quarter.
Amadeus’ revenue came in at 418.6 million euros, down 70.1% from a year ago and close to the 416 million euros expected by analysts polled by Refinitiv.
In its third quarter, the company burned through about 50 million euros per month as air traffic improved. The company expects a monthly figure of 50 million to 100 million euros in the fourth quarter and in 2021 as it assumes air traffic will contract as much as 80% compared with 2019, Chief Financial Officer Till Streichert told investors.
Back in the second quarter the number of cancellations via agencies exceeded the number of reservations. In the third quarter the balance was positive.
Amadeus’s shares were trading up 2.2% at 1510 GMT.
($1 = 0.8451 euros)
Reporting by Anita Kobylinska, Editing by Emelia Sithole-Matarise and Elaine Hardcastle