Total bookings through Sabre’s global distribution system increased 12 percent year over year in the second quarter to 90 million, and the travel technology company said Thursday it hopes for “solid” industry growth in the coming quarters.
Sabre president and CEO Kurt Ekert in an earnings call said reasons for optimism in growing flight volumes include “rising aircraft deliveries to global carriers, further mitigation of supply constraints from labor and training shortfalls and a healthy yield environment and load factors.” Business travel demand in particular is expected to be “healthy,” though Sabre has conservative estimates of about 1 to 2 points of sequential volume growth in future quarters, he said.
Sabre’s distribution revenue increased 23 percent year over year in the second quarter to $530 million, due not only to the increase in bookings but also “a favorable shift” in booking mix, according to Sabre. The average booking fee was up 10 percent year over year to $5.87.
Over the first half of this year, Sabre has doubled the number of airlines distributing New Distribution Capability content through the Sabre marketplace, including the additions of United Airlines and Aeroméxico, Ekert said. Sabre also signed a “significant number of agreements” with agencies during the second quarter, including a new long-term commitment with Internova, Ekert said.
Sabre’s Hospitality Solutions revenue increased 16 percent year over year to $77 million in the second quarter. The increase was driven by an 8 percent increase in central reservation system transactions as well as a higher rate per transaction, according to Sabre.
Ekert also said Sabre has completed “the vast majority” of a $100 million cost reduction for this year that Sabre announced last quarter, which included a workforce reduction of about 15 percent.
Sabre reported a net loss of $129 million in the second quarter, an improvement over a $193 million net loss in the second quarter of 2022. A $59 million restructuring charge related to the workforce reduction contributed to the loss.