Sabre Corp. reported that corporate travel strength helped offset the impact from the conflict in the Middle East and fuel prices on air bookings and revenue in the first quarter, with hopes for a "more normalized environment" coming later this year.
For the first quarter, Sabre reported air bookings were up 6 percent year over year—which Sabre CEO Kurt Ekert said was the highest rate of growth in more than two years—as total revenue increased 8 percent to $760.3 million. In the first two months, bookings were up 9 percent, but that trend changed in March with the onset of the Middle East conflict, Ekert said in an earnings call on Thursday.
About 11 percent of Sabre's air distribution bookings originate or pass through the Middle East, and the conflict, along with rising fuel prices, caused a hit of about 7 percentage points to bookings in the month. At the same time, Sabre saw "steady performance and resilience throughout the first quarter" for corporate business, along with strong business overall in North America, Ekert said. With that combination, bookings were about flat for the month.
"Corporate has actually been very positive all year, a very strong share in the last two months included," he said.
With the trends continuing into April, Sabre expects both year-over-year revenue and air distribution growth to be at or near flat in the second quarter. The company still expects revenue and air distribution growth for the full year to be in the low- to mid-single-digit percentage range, with the assumption that the Middle East conflict will subside during the second quarter and fuel prices subsequently will normalize, Ekert said.
"Our underlying assumption is the geopolitical and macro environment start to smooth out at some point during the second quarter," Sabre EVP and CFO Mike Randolfi said during the call. "With that, we see increased booking growth in the third quarter, more muted from our initial expectations but well above the industry."
Sabre reported lodging and other bookings increased 3 percent year over year in the first quarter, and airline technology revenue increased 7 percent to $142.3 million.
Sabre's net income for the first quarter was $8.1 million, down from $35.3 million in the first quarter of 2025. Sabre said the decline stemmed in part from the sale of its Hospitality Solutions business to private equity and investment firm TPG, which was completed in July.
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