Sabre on “long-term upward trajectory” as bookings recover

Sabre is reporting revenue of $658 million for the second quarter of 2022, driven in part by an increase in global air, hotel and other travel bookings.

In its Q2 2022 earnings statement, the travel technology company reports favorable rate impacts in its Travel Solutions business also contributed to the 57% year-on-year revenue increase.

Air bookings recovery accelerated in key global regions each month during the quarter ending June 30, 2022, while corporate and international travel continued to rebound, driving improved mix and higher-than-expected revenue per booking.

Sabre’s net loss for the quarter was $193 million. Operating loss was $70 million, compared to an operating loss of $180 million in Q2 2021.

“In the quarter we experienced solid improvements in each of our volume metrics. Specifically, we saw sequential volume improvements in air bookings each month during the second quarter, across all key global regions. The strong booking fee increase was driven in part by improvements in long-haul international and business travel,” says Sabre chair of the board and CEO Sean Menke.

“As global travel and testing restrictions lifted, a robust travel recovery ensued and we were ready for it. Unfortunately, some airlines and airports have struggled with the pace of the recovery, leading to capacity growth moderating as the carriers and airports sought to stabilize operations with a backdrop of strong consumer demand. Overall, we firmly believe the travel recovery remains on a long-term.

"In addition, we continue to achieve our interim technology transformation milestones, and we remain on track to deliver on our expectations for significant savings and expand revenue opportunities."

As part of its technology transformation , in 2020 Sabre and Google Cloud announced a 10-year partnership for initiatives such as the migration of its IT infrastructure and use of Google Cloud’s data analytics tools.

For Q2 2022, Sabre says its technology transformation, including mainframe offload and cloud migration, moved forward and remains “solidly on track to reach long-term cost savings goals.”

Adjusted EBITDA for the quarter was $24 million compared to an adjusted EBITDA loss of $70 million in the second quarter of 2021.

Sabre’s Travel Solutions revenue increased 60% to $599 million. Global bookings for the second quarter of 2022 totaled 81 million, a recovery to 57% of 2019 levels.

Its IT Solutions division saw revenue increase 8% year-on-year to $168 million. Airline passengers totaled 160 million for the quarter, a recovery to 89% of 2019 levels.

Hospitality Solutions revenue increased 30% to $66 million. In May, Sabre acquired hotel management and guest engagement software company Nuvola to enhance its hospitality retailing and merchandising strategy.