Sabre Corporation’s ( SABR Quick Quote SABR - Free Report) latest update on key performance metrics reflects the accelerating recovery of the travel industry from the mayhem of the pandemic.
In a filing with the Securities and Exchange Commission (SEC), on Wednesday, Sabre revealed that its key performance metrics improved in March 2022 compared with March 2019, the year before the outbreak of the pandemic in mid-March 2020 that rattled the travel industry.
Per the SEC filing, the travel booking software provider’s gross air bookings between Mar 1 and Mar 28 recovered to about 48% of the same period in 2019, while net air bookings recovered to approximately 50%. Also, passengers boarded recovered to about 76% of the 2019 level and gross hotel central reservation system transactions recovered to approximately 105%.
Sabre stated in the
SEC filing that “While domestic and leisure bookings have continued to lead the recovery, international and corporate bookings have improved at an accelerating rate since January 2022.” SABR also noted that the recovery has broadened in the past few months, with all regions showing a strong improvement since the beginning of 2022.
Considering the recovery pattern, Sabre forecasts the March 2022 recovery of international and corporate bookings to be at the highest level since mid-March 2020 compared with the 2019 level. Furthermore, the company projects its March net Global Distribution System bookings recovery to be approximately 41% of the 2019 level.
Additionally, Sabre also provided an update on the impact of the ongoing Russia-Ukraine war over its business. The company revealed that Russia accounted for a low-single percentage of its total 2019 Travel Solutions revenues. Following the invasion of Kremlin forces in Ukraine, SABR terminated its distribution contract with the Russian airline, Aeroflot, in early March.
Sabre’s latest quarterly results also depict an improving trend in the travel industry. In February 2022, the company delivered revenues of $501 million for the fourth quarter of 2021, higher than revenues of $314 million posted in the year-ago quarter and surpassed the Zacks Consensus Estimate of $475.5 million.
Moreover, Sabre reported revenues of $1.7 billion for full-year 2021, up 27% from the pandemic-hit year 2020. This year-over-year surge in the top line reflects the continued gradual recovery in global air, hotel and other bookings.
With mass vaccination efforts and the weak effect of COVID-19 on human health, economies worldwide are lifting travel restrictions. Moreover, travelers have started resuming their summer and spring vacation plans, which they postponed due to the pandemic. We believe that all these factors shall aid in faster recovery for the travel industry, thereby boosting revenues for Sabre.
Zacks Rank & Stocks to Consider
Currently, Sabre carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology sector include
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