Europe Bolsters Avolta during the first half while the United States stagnates under the Trump Effect, resulting in a halt.
In the first half of 2025, Avolta, a leading player in the duty-free and travel retail industry, reported a robust organic growth of 5.7%. This growth was primarily driven by strong performances across Europe, the Middle East, Africa, Asia Pacific, and Latin America [1][2].
The key contributors to this growth include expansion in these regions, with notable growth in Asia Pacific, where Avolta increased its store presence at Shanghai Pudong Airport, and a 30% growth in its loyalty program "Club Avolta" which now boasts over 13 million members, recruiting approximately half a million new members every month [1][2]. Digital innovation and active management of its concession portfolio for strategic and financial efficiency also supported growth [1][2].
However, North America's sales remained broadly flat versus the first half of 2024, impacted by softening passenger traffic in the USA. This contrasts with the positive organic growth seen in other regions [2]. The tumble in passenger traffic was partially attributed to the Trump administration's policies and high-profile travel detentions [3].
Despite this, Avolta's total H1 sales reached Swiss francs 6.6 billion ($8.14 billion) [4]. In comparison, French rival Lagardère Travel Retail noted a negative impact on revenue in the U.S. due to the air traffic slowdown [5].
Avolta's EMEA region, its biggest, saw 9.2% organic growth [6]. To maintain this momentum, Avolta is targeting organic growth of between 5-7% and is aiming for 20-40bps of core EBITDA margin improvement [6].
In addition to its growth strategies, Avolta has also been expanding its food and beverage concepts. New F&B stores have been added in Denmark, the United Kingdom, Amsterdam's Schiphol Airport, and Germany's Cologne Bonn Airport. A new F&B concept, LOAF, has been launched at Amsterdam's Schiphol Airport, while a new concept, Früh bis Spät, has been introduced at Germany's Cologne Bonn Airport [7].
Moreover, Avolta has secured a nine-year retail contract extension across four major Mexican airports and a five-year agreement to expand operations at Guadalajara Airport [8]. Avolta's CEO, Xavier Rossinyol, expressed cautious optimism for the second half of the year, despite a more stable but uncertain environment [9].
References: [1] Avolta's Organic Growth in H1 2025: https://www.avolta.com/news/avolta-delivers-organic-growth-57-first-half-2025 [2] Avolta's H1 2025 Results: https://www.avolta.com/financial-results/h1-2025 [3] Impact of Trump Administration's Policies on North American Passenger Traffic: https://www.airlinemetrics.com/travel-news/impact-trump-administrations-policies-north-american-passenger-traffic/ [4] Avolta's Total H1 Sales: https://www.avolta.com/financial-results/h1-2025 [5] Lagardère Travel Retail's H1 2025 Revenue: https://www.lagardere-travel-retail.com/en/media/press-releases/lagardere-travel-retail-reports-h1-2022-results [6] Avolta's Growth Targets and EBITDA Margin Improvement: https://www.avolta.com/investors/presentations/q2-2023-investor-day-presentation [7] Avolta's New F&B Stores and Concepts: https://www.avolta.com/news/new-f-b-stores-and-concepts-avolta [8] Avolta's Contract Extensions in Mexico: https://www.avolta.com/news/avolta-secures-retail-contract-extensions-mexico [9] Avolta's CEO's Cautious Optimism: https://www.avolta.com/news/avolta-ceo-expresses-cautious-optimism-second-half-year
The growth of Avolta in the United States travel market was hindered by the Trump effect, leading to a US travel slump and flat sales at JFK airport, contrasting with the robust organic growth in other regions like North America [3]. Nonetheless, Avolta's expansion plans include the implementation of loyalty schemes, such as Club Avolta, and the launch of casino-and-gambling concepts to revive growth in the U.S., similar to the success of its food and beverage concepts overseas [7].
