Posted October 31, 2017

Hurricanes Ding Sabre Q3 Bookings

Sabre's worldwide global distribution system bookings rose 3 percent year over year during the third quarter to 130 million. Air bookings and nonair bookings each rose roughly 3 percent year over year to 114 million and 16 million, respectively.

Hurricanes impacted demand in the U.S. and the Caribbean and, in total, shaved 1 percentage point, or 1.3 million bookings, off its worldwide GDS booking growth rate during the quarter, said CFO Rick Simonson during a quarterly conference call Tuesday.

North American and Latin American bookings fell 2 percent apiece year over year.

On the brighter side, Sabre reported 16 percent year-over-year booking growth in EMEA. Asia/Pacific also was strong, with bookings up 11 percent.

Those regions benefited from new agency conversations in the quarter. That includes the ongoing cutover of a big chunk of Flight Centre's business from Travelport to Sabre. Flight Centre will continue to migrate booking volume to Sabre through early 2018.

Sabre reported that worldwide GDS airline booking market share declined year over year by nearly a percentage point to 36.5 percent. That was "likely driven by Sabre's dominant market share in the U.S. where the hurricanes reduced air travel," according to Evercore ISI analysts.

Companywide revenue rose 7 percent year over year to $901 million. Sabre's Airline and Hospitality Solutions business unit saw revenue rise 5 percent to $275 million, despite headwinds in its airline IT business, which continues to reel from the long-anticipated loss of Southwest's passenger services system business.

Revenue for Travel Network, which includes Sabre's GDS business, rose 9 percent to $632 million.

Adjusted earnings before interest, taxes and depreciation rose 11 percent to $263 million.

Posted by: Jay Boehmer | More by Jay Boehmer

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