Total bookings through Sabre's global distribution system increased 12 per cent year over year in the second quarter to $90 million, and the travel technology company said on Thursday it hopes for "solid" industry growth in the coming quarters.
Sabre president and CEO Kurt Ekert in an earnings call said reasons for optimism in growing flight volumes include "rising aircraft deliveries to global carriers, further mitigation of supply constraints from labour and training shortfalls and a healthy yield environment and load factors."
Business travel demand in particular is expected to be "healthy," though Sabre has conservative estimates of about 1 to 2 points of sequential volume growth in future quarters, he said.
Sabre's distribution revenue increased 23 per cent year over year in the second quarter to $530 million, due not only to the increase in bookings but also "a favourable shift" in booking mix, according to Sabre. The average booking fee was up 10 per cent year over year to $5.87.
Over the first half of this year, Sabre has doubled the number of airlines distributing New Distribution Capability content through the Sabre marketplace, including the additions of United Airlines, Virgin Atlantic and Air Canada, Ekert said.
Sabre also signed a "significant number of agreements" with agencies during the second quarter, including a new long-term commitment with Internova, Ekert said.
Sabre's Hospitality Solutions revenue increased 16 per cent year over year to $77 million in the second quarter. The increase was driven by an 8 per cent increase in central reservation system transactions as well as a higher rate per transaction, according to Sabre.
Ekert also said Sabre has completed "the vast majority" of a $100 million cost reduction for this year that Sabre announced last quarter, which included a workforce reduction of about 15 per cent.
Sabre reported a net loss of $129 million in the second quarter, an improvement over a $193 million net loss in the second quarter of 2022. A $59 million restructuring charge related to the workforce reduction contributed to the loss.