Amadeus' Air Booking Recovery Continues Amid an Ominous Consumer Landscape

Despite uncertainty around the pace of corporate travel recovery, direct connections between major North American carriers and online travel agencies, and consumer spending, we see Amadeus' business demand rebounding in 2024 from the pandemic-caused April 2020 nadir during the next few years. Long term, we expect its leadership position in global distribution systems to endure, driven by its leading network of airline content and travel agency customers as well as its healthy position in software solutions for these carriers and agents. Amadeus is the largest of the three GDS operators (narrow-moat Sabre is number two, followed by privately held Travelport) that control nearly 100% of market volume.