Amadeus Seeing Soft Demand Amid Economic Uncertainty, but Long-Term Edge Intact

While Amadeus saw low-teens sales growth in 2024, the company enters 2025 with waning consumer sentiment and enduring inflation expectations driven by tariff policy. That said, we see Amadeus' demand continuing to rebound in 2025 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 second, followed by privately held Travelport) that control nearly 100% of market volume.