Spain's eDreams swings to profit in 2023 after three years of losses

By Matteo Allievi

(Reuters) - Spanish online travel booking company eDreams ODIGEO said on Thursday it turned to profit in 2023 as its subscription programme helped it fully recover from three years of losses due to pandemic-linked restrictions.

The Barcelona-based firm, whose fiscal year ends in March, reported a net profit of 32.4 million euros ($34.96 million) compared with a loss of 43.3 million euros in the preceding year.

The company was also in the red in 2020 and 2021 as aviation authorities in the world ground the industry to a halt amid the pandemic.

eDreams' subscription programme, for which it charges an annual flat fee of about 55 euros for access to lower fares, was the main driver of profits.

The number of subscribers rose to 5.8 million in 2023, up 34% from the previous year.

The company said it was on track to meet its targets of 180 million euros in core earnings and 7.25 million subscribers by 2025.

"While our Prime member penetration is rapidly increasing, it still remains relatively low in our major markets, indicating ample room for further growth," said CEO Dana Dunne in a statement.

In the long term, eDreams said it foresees "significant growth potential" beyond fiscal 2025.

The International Air Transport Association IATA expects 4.7 billion people to travel in 2024, compared with 4.5 billion in 2019, which eDreams sees as an opportunity for further growth in the leisure travel market.

"The figures confirm the company's good performance and keep us optimistic about its evolution", said GVC Gaesco analyst Juan Pena.

Shares were up 2.5% at 0804 GMT, outperforming blue chip index Ibex-35.

($1 = 0.9268 euros)

(Reporting by Matteo Allievi, editing by Inti Landauro and Bernadette Baum)