(Reuters) -Spanish travel technology company Amadeus said on Thursday its profit rose in the first quarter despite a global air traffic slowdown. The company, which operates the world's largest travel
Amadeus Shares Drop Amid Core-Profit Guidance Adjustment
By Javi West Larrañaga
(Reuters) -Spanish travel technology company Amadeus said on Thursday several airline incidents, weather disruptions and government developments in the U.S. hurt its first-quarter bookings.
Shares were down 5.3% in mid-afternoon trading, as Amadeus also trimmed full-year core-profit growth guidance by 1.3 percentage points, estimating that if the current U.S dollar to Euro exchange rate remains the same or continues to weaken it would generate a negative impact starting in the second quarter.
It said bookings in April were growing slightly below first-quarter levels as the travel industry, mainly in the U.S., is showing signs of weakness.
The company, which operates the world's largest travel booking system, posted a first-quarter adjusted net profit of 364 million euros ($411 million), roughly in line with analysts' estimates, and 12.3% higher than in the first quarter of 2024.
Analysts had forecast an average profit of 365 million euros, according to LSEG data.
Despite the travel industry's softness, Amadeus' Chief Executive Luis Maroto said he was confident he could offset the setbacks through higher prices, gaining customers and offering more services to them.
Amadeus is directly affected by travel demand, meaning a contraction of the global economy as a result of increasing trade tensions could affect the company's full-year performance.
($1 = 0.8849 euros)
(Reporting by Javi West Larrañaga, editing by Inti Landauro and David Evans)
