Sabre cuts losses by $100m

Sabre slashed losses by more than $100 million in the second quarter of the year.

The corporation, which includes Travelocity, saw losses cut to $10.9 million in three months to June 30 against a deficit of $116.9 million in the same period a year earlier.

Airline and hospitality solutions revenue increased 4.9% to $187 million from $178 million in the second quarter of 2013.

Sabre Travel Network revenue rose by $6 million or 1.3% to $462 million.

Excluding Travelocity, revenue increased 3.6% from $614 million in the second quarter of 2013 to $637 million in the second quarter of 2014.

Travelocity suffered a 45% slump in revenues to $84 million year on year and a quarterly loss of $9 million against a profit of $9 million for the same period a year ago.

Sabre said it expects “stronger business performance and increasing profitability” for Travelocity going forward.

President and chief executive Tom Klein said: “We made solid progress in the second quarter both financially and with our initiatives focused on leading the technology transformation of the travel industry.

“We saw particularly strong earnings growth as our customers continue to use our technology to increase revenue, reduce costs, and deliver unique, personalised experiences to travellers.

“Our investments in innovations that allow customers to leverage data and take advantage of mobile services are setting new industry standards.”

The company’s IPO in April helped reduce debts by more than $600 million.

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