Delta Air Lines is making a few big changes to its route network.
02.11.2023 - 23:30 / skift.com / Justin Dawes / Kurt Ekert
Sabre said it had positive cash flow in the third quarter for the first time since 2019 – $39 million, a reversal from negative $123 million a year ago. Revenue jumped 12%, driven primarily by an increase in air and hotel bookings.
Sabre’s primary business is its global distribution system, operating as an intermediary between airlines and travel sellers like online travel agencies.
During an earning call Thursday, Kurt Ekert, president and CEO of Sabre, also pointed to lower operating costs. The company’s ongoing shift to Google Cloud helped, as did a restructuring this year that included roughly 1,100 layoffs.
At the same time, Sabre faced increased expenses to travel management companies and online travel agencies, which receive incentives for making bookings through Sabre’s global distribution system. The company has said that increasing incentives are having a negative impact on the business.
Though adjusted EBITDA and free cash flow have been growing, it may not reach the targets Sabre has outlined for 2025 because they assume a consistent growth of air travel bookings each quarter until that time. “In recent quarters, we have seen industry air volume growth come in below these levels,” Ekert said.
Sabre stock jumped 18% Thursday, but is down 33% this year and 82% from February 2020.
Sabre’s software system for the hotel industry makes up about 10% of the company’s revenue, but that number is growing. That division of the business increased revenue 16% in the third quarter. That does not include the partnership with Hyatt that was announced earlier this year.
Hyatt plans to implement Sabre’s central reservation system in the first half of next year, and Sabre should receive its fully contracted revenue from that deal by the end of 2025.
“Hospitality solutions continues to drive better financial results faster than we had anticipated earlier this year, and is now on track to produce an approximate $40 million improvement in adjusted EBITDA this year versus last year,” Ekert said.
What am I looking at? The performance of travel tech sector stocks within the ST200. The index includes companies publicly traded across global markets including online travel, booking, and travel tech companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more travel tech sector performance.
Read the full methodology behind the Skift Travel 200.
Delta Air Lines is making a few big changes to its route network.
A Vrbo host recently surprised TPG reader Diah Jones with a troubling ultimatum that felt a lot like a shakedown.
Visit Orlando may see a cut to its $100 million budget – one of the largest destination marketing budgets in the United States.
Eurostar could face fresh rivalry on its cross-Channel train route.
U.S. authorities are likely to retaliate against the Dutch government’s decision to cut flights at Amsterdam’s Schiphol airport, probably limiting slots for Dutch airline KLM at U.S. airports, airline lobby group IATA said on Tuesday.
Tripadvisor laid off around 125 employees, or 4% of its workforce, in the third quarter and the company said last week that additional job trims will take place before the end of the year.
Tall people may quarrel with this, but there's nothing worse than flying while short.
The USAA Preferred Cash Rewards Visa Signature® Credit Card is a good cash-back option for current and former military members, as well as their spouses and dependents. While it lacks any welcome bonus or exclusive perks, this card offers a no-frills experience with unlimited 1.5% cash back on purchases and no annual fee (see rates and fees), making it a solid choice for military members seeking a simple and rewarding cash-back card. Card rating*: ⭐⭐⭐½
It is not an easy time to be a small business dealing with a combination of high interest rates and inflation, however, many are rising to the challenge and facing these issues head on.
Maybe Austin wasn't as hot as American Airlines had expected.
The Mile High City will no longer be home to any yellow Airbus jets.
Costa Rica’s epic landscapes make it prime road-trip territory, from its wild Pacific coastline to the relaxed vibe of its Caribbean beaches, lush wildlife-filled forests, and still-smoldering volcanoes.