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Sabre (SABR) and SKY Airline Renew Multi-Year Agreement

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Sabre Corporation (SABR - Free Report) and Chile’s SKY Airline recently extended their existing relationship with a new multi-year agreement. Sabre will continue to provide its Global Distribution System (“GDS”) to SKY Airline and assist the airline’s successful migration to SabreSonic Passenger Service System (“PSS”), a passenger reservations system under the new agreement.

The renewed agreement reaffirms SKY Airline’s trust in Sabre's PSS and GDS solutions. The company’s PSS solution will help the airline deliver a more tailored customer experience, thereby generating additional revenue opportunities. SabreSonic will increase SKY Airline’s international presence through merchandising, codeshare agreements and alliance partners.

Sabre’s GDS is a New Distribution Capability-enabled consistent end-to-end workflow solution, which works like a marketplace connecting travel suppliers with buyers. The Chilean air carrier will use this platform to expand its content regime and services while creating compelling offers for its customers.

Under this agreement, the airline will strengthen the distribution of its flight inventory through Sabre's global network of travel buyers and the millions of customers it serves. This will allow Sabre-connected travel agencies to access content without any surcharge.

In the first quarter of 2023, Sabre’s Travels Solutions segment revenues totaled $677.4 million compared with the year-ago quarter’s $534 million. This upside was mainly fueled by the gradual recovery of global air and other travel bookings, partially offset by the sale of the AirCentre portfolio in February 2022. The segment’s revenues also benefited from favorable rate impacts as international and corporate bookings improved.

Sabre has more than 425,000 travel agency partners worldwide at present. The company provides one of the largest marketplaces in the world that manages approximately $260 billion worth of global travel spending annually.

The leading travel-related software and technology provider has its customer base spread in more than 160 nations globally. In May, Sabre signed a long-term technology renewal agreement with Taiwan’s South East Travel, under which, the Taipei-headquartered agency will continue to leverage the company’s products for expanding its business and improving operational efficiency.

In March, the company signed an agreement with Singapore-based Capillary Technologies to integrate the Capillary loyalty management solution into its airlines and hoteliers platforms. In a separate deal, Sabre inked a technology agreement with Almatar Travel Group, a leading travel company in the Kingdom of Saudi Arabia. This deal was to provide SABR’s industry-leading technology and solutions for speeding up Almatar’s operational efficiency, improving its strategy of virtual payments and transforming travelers’ experience.

In the same month, Sabre declared Brazil’s GOL Linhas Aéreas’ successful implementation of Sabre Ancillary IQ. The Ancillary IQ is an artificial intelligence-based solution designed to help create personalized offers for travelers and drive incremental ancillary revenue opportunities for airline customers.

The company also signed a distribution agreement with Bangladesh start-up airline, Air Astra, in March. The Dhaka-based carrier has joined Sabre’s global distribution family to support its indirect retailing strategy as it plans for future growth.

Sabre reported revenues of $742.7 million in first-quarter 2023. The top line was $584.9 million, which was 27% higher than the year-ago period. This surge clearly reflected a significant improvement in the company’s global air, hotel and other bookings.

Zacks Rank & Other Key Picks

Sabre currently carries a Zacks Rank #2 (Buy). Shares of SABR have lost 49.5% over the past year.

Some other top-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 14% upward to $2.79 per share over the past 30 days. For 2023, earnings estimates have moved north by 12.1% to $11.76 in the past 30 days.

META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have gained 29% in the past year.

The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.

MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have jumped 68.1% in the past year.

The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 11 cents to $2.04 per share over the past 30 days. For 2023, earnings estimates have moved up by 39 cents to $9.54 in the past 30 days.

NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 19.6% in the past year.

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