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Sabre (SABR) Expands Its Travel Marketplace With Air Canada NDC

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Sabre (SABR - Free Report) recently launched Air Canada’s new distribution capability (NDC) content in SABR’s travel marketplace. This partnership will enrich SABR’s travel marketplace with Air Canada’s offerings to third-party travel sellers.

On the other hand, Air Canada will be able to benefit from more than 30,000 Sabre-connected travel agencies operating across 150 countries. This partnership will enable Air Canada to leverage Sabre's technology, implementing offer and order-based retailing to enhance service for travel agents.

Despite continuous deal wins, which are aiding top-line growth, shares of Sabre have plunged 23.2% year to date. The decline in SABR reflects investors’ growing concern about the company’s recovery amid current macroeconomic uncertainties and geopolitical issues

Portfolio Strength Drives Growth

Sabre operates in a highly competitive travel distribution space that requires the company to continuously innovate and inject its offerings into other products to expand its market reach. The range of product offerings has helped the company boast a strong and diverse customer base, which adds to the top-line growth.

Sabre’s strong portfolio of airline solutions, such as the SabreSonic passenger service system, AirCenter and AirVision, and other products like Sabre Red Workspace have witnessed strong growth. At present, 17 airlines all over the world, including United Airlines (UAL - Free Report) , American Airlines (AAL - Free Report) and Hawaiian Airlines (HA - Free Report) , have partnered with Sabre to offer its NDC content in the Sabre Global Distribution System.

United Airlines, American Airlines and Hawaiian Airlines introduced their NDC offers on Sabre’s GDS to allow travel buyers to access their pricing content on multiple platforms like Sabre Red 360, Sabre APIs and GetThere. The new partnership with Air Canada, which is also the largest airline in Canada, will give Sabre a competitive advantage in the Canadian travel space.

SABR Recovers From Pandemic Woes

Sabre’s recent quarterly results reflect that the company is moving toward stabilization after the severe impacts of the COVID-19 pandemic-led global economic crisis. In the first quarter of 2024, the company recorded revenues of $783 million, up from the revenues of $743 million posted in the year-ago quarter. This year-over-year surge in the top line reflects a significant improvement in global air, hotel and other travel bookings. Additionally, its Travel Solutions division benefited from favorable rates as international and corporate bookings continued to improve.

The Zacks Consensus Estimate for Sabre’s 2024 revenues is pegged at $3.04 billion, indicating year-over-year growth of 4.6%. The consensus mark for the bottom line is pegged at a loss of 16 cents per share, narrower than the loss of 52 cents reported in the year-ago quarter.

Sabre currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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