Amadeus Posts Solid Growth, Bets on AI and Biometrics Amid Geopolitical Headwinds

MADRID and SINGAPORE – May 08, 2026 – Global travel technology leader Amadeus today reported a solid start to 2026, demonstrating financial resilience with increased revenue and profits despite significant geopolitical headwinds that moderated growth late in the first quarter. While navigating current market turbulence, the company also signaled a bold, long-term strategic direction with major investments in biometrics and artificial intelligence aimed at creating a more seamless travel ecosystem.

The Madrid-based firm announced that its group revenue for the first quarter of 2026 rose 3.1% to €1,682.6 million. At constant currency, this growth was a more robust 7.9%. Adjusted EBIT reached €500.0 million, and free cash flow grew 4.5% to €273.6 million, underscoring the company’s operational strength.

Navigating a Turbulent Market

The quarter's performance tells a story of two distinct periods. Amadeus entered the year with strong momentum carrying over from late 2025, seeing an acceleration in booking growth through January and February. However, the geopolitical situation in the Middle East introduced significant volatility in March, leading to a spike in booking cancellations and a slowdown in new travel plans. This external shock muted what was shaping up to be an exceptionally strong quarter.

Global air traffic growth, a key industry metric, slowed from 5% in the first two months of the year to just 2% in March. Amadeus’s results reflected this trend, with the company also noting the impact of airline strikes in Western Europe compounding the issue.

Luis Maroto, President & CEO of Amadeus, commented on the mixed environment. "Amadeus reported solid revenue and profit growth in the first quarter. While volumes moderated in March, following the geopolitical situation in the Middle East, we continue to demonstrate strong commercial momentum," he stated. "We are closely monitoring the uncertain macro context, with the range of impacts making it difficult to predict in the short-term. We are currently expecting to deliver within our guided expectations for 2026, and we will update the market if this changes."

The company’s diversified business model provided a natural hedge against the disruption. The Air Distribution segment, which is tied to new bookings, saw its revenue growth flatten to 0.1% as cancellations took their toll. In contrast, the Air IT Solutions segment delivered impressive 7.5% revenue growth (12.0% at constant currency), partly fueled by increased rebooking activity stemming from the very disruptions that hampered new bookings. This highlights the resilience built into its portfolio.

A Strategic Bet on Frictionless Travel

Looking beyond the immediate quarter, Amadeus is making a significant strategic pivot with its planned €1.2 billion acquisition of IDEMIA Public Security (IPS), a leader in biometrics and identity services. The deal, expected to close in mid-2026, is a cornerstone of the company's vision for a future of frictionless travel.

By integrating IPS's expertise, Amadeus aims to create seamless end-to-end journeys where a traveler’s identity can be verified quickly and securely at multiple points, from check-in to boarding, without the need for repeatedly presenting documents. This move is central to the company’s ambition to move beyond software and become a key orchestrator of the entire travel experience.

"We continue to invest in the future through our planned acquisition of leading biometrics and identity services provider IDEMIA Public Security (IPS)," Maroto explained. "This deal fits naturally into Amadeus' strategy and will improve the traveler experience by reducing friction and enabling more integrated travel journeys."

Building the AI-Powered Travel Ecosystem

The IPS acquisition is a key component of a much broader ambition: to become an 'orchestrator of an AI-enabled travel ecosystem.' Amadeus is investing heavily to secure this role, committing €335 million to Research and Development in the first quarter alone.

This investment is fueling partnerships with technology giants like Microsoft, Google, and Amazon Web Services to accelerate its AI capabilities. Recent innovations showcased by the company include a demonstration with Google Cloud that used Gemini AI and Google Maps to create hyper-personalized travel experiences. In another pilot with Microsoft, Amadeus tested an agentic AI commerce solution for airline call centers, enabling sophisticated, multi-lingual conversations with voice-based agents.

These initiatives illustrate a strategy that goes far beyond traditional booking systems. Amadeus is focused on building a platform that integrates disparate parts of the travel industry—airlines, airports, hotels, and ground transport—using AI as the connective tissue to make the entire process more intelligent, personalized, and efficient for both providers and travelers.

Financial Health and Shareholder Confidence

Underpinning these ambitious growth plans is a foundation of robust financial health. The company is actively executing a €500 million share repurchase program announced in late February, a clear signal of management's confidence in its financial position and future prospects.

This confidence is backed by a strong balance sheet. As of March 31, 2026, Amadeus reported a conservative net financial debt of €2,586.0 million, equivalent to just 1.0 times its last-twelve-month EBITDA. Healthy free cash flow generation provides the flexibility to both invest in transformative acquisitions like IPS and return capital to shareholders.

While maintaining its full-year guidance for 2026, the company has cautiously indicated that revenue growth is now more likely to be at the lower end of its previously stated high single-digit range, reflecting the ongoing market uncertainties. With a firm eye on long-term technological transformation, Amadeus is positioning itself to not only weather current market volatilities but also to fundamentally reshape the future of global travel.