Sabre narrows decline in sales, but still fall by over 70%
Sabre is battling amid the decline in travel globally – and it’s still dealing with big headwinds. The Southlake company, which provides software for airlines and hotels, said sales dropped by about 72 percent in the third quarter, according to information posted to its website. While massive, that’s still better than the drop of more than 90 percent in the second quarter.
The company swung to an adjusted operating loss of $197 million in the third quarter from a gain of $133 million in the year-ago period.
Sabre — while noting improvements — is dealing with the widespread collapse of activity in the travel industry as restrictions and concerns about the pandemic curtail business trips, vacations or flights to see families. CEO Sean Menke pointed to the need for his company’s software even as customers grapple with sagging sales.
“The COVID-19 pandemic continues to suppress travel demand and impact our customers, partners, and, of course, our financial results,” Menke said in prepared remarks posted to its website ahead of a call with analysts. “Importantly, Q3 booking trends showed signs of improvement from the second quarter, and we have cautious optimism for ongoing improvements.”
Menke said the company has signed 1,400 individual airline and agency deals so far this year. “We have taken decisive actions to manage through the COVID-19 global pandemic while continuing to execute and deliver on our technology transformation and product capabilities that will be necessary for our customers to rebound and excel once the impact of the pandemic recedes,” Menke said in the remarks.
The said noted it ended the quarter with a $1.7 billion cash balance, according to its website.
