08-05-2025
Sabre's Q1 air bookings decline, but 2025 growth is projected
Sabre reported a 3% decline year over year in air bookings during the first quarter, below prior expectations, but the travel technology company is holding on to its projection for double-digit percentage growth in bookings full the full year.
The decline in air bookings was three to four percentage points lower than Sabre's previous expectations of flat to nominal growth for air bookings in the first quarter, Sabre CEO Kurt Ekert said in an earnings call on May 7.
He said the decline stemmed from "a broad softness globally" that "spanned corporate, leisure, pretty much all channels." In particular, inbound travel to the U.S. from Canada and certain European markets was down, as were group bookings from North Asia. U.S. military and government bookings were down about 30% year over year, he said.
Ekert said Sabre is seeing "recent improvements in general market trends," and the company projects low-single-digit percentage growth in air bookings for the second quarter. For the full year, Sabre projects double-digit growth, but that won't stem from growth in legacy GDS bookings, which Sabre projects will be down 1-2% year over year industrywide.
"When we speak about the double-digit air distribution volume growth, the vast majority of that is business that we signed and will be implementing," Ekert said. "The addition of new content will drive that as well."
Ekert said Sabre will build off "notable" travel agency wins in 2024, which include World Travel Inc., and the company recently was selected by Gray Dawes to serve as its sole GDS partner. Sabre CFO Mike Randolfi said he expects 20% growth in air bookings in the second half of the year, the majority of which will come from agency agreements that are already signed and not yet implemented.
Sabre also continues to expand its New Distribution Capability content, with 38 NDC integrations live. Low-cost carrier volume via the Sabre AirConnect platform, set for the third quarter, also will contribute to growth, Ekert said.
Sabre's lodging, ground and sea bookings were up 5% in Q1, and total distribution revenue declined 1%, to $569.1 million. IT solutions revenue declined 6%, to $133 million, as Sabre reported an impact from "previously de-migrated carriers."
Sabre Hospitality Solutions revenue increased 8%, to $85.2 million. Sabre is selling that unit to private equity and investment firm TPG for $1.1 billion, which Ekert said "enables us to strengthen our balance sheet by reducing leverage nearly a full turn and sharpen our focus on core growth areas."
Sabre reported net income of $35.3 million in the first quarter, compared with a loss of $71.5 million in the first quarter of 2024.
Source: Business Travel News
