Corporate and government travel weakness, product delays, and modest hotel booking gains amid market softness drive 40% share drop
Aug 12, 2025
Sabre reported a 1% year-over-year revenue decline in Q2 2025 to $687 million, as weaker-than-expected air distribution bookings offset gains in hotel distribution. While adjusted EBITDA rose 7%, the company cut its second-half air bookings growth forecast to 4–10% from a prior 20% target. CEO Kurt Ekert cited industry softness, reduced airline capacity, and Sabre’s heavier exposure to booking segments in decline. Sabre also delayed the launch of its low-cost carrier integration solution to early 2026 and completed the $1.1 billion sale of its hospitality solutions business to TPG. Shares fell nearly 40% after results came in below estimates.
Key takeaways
- Revenue and profit trends: Q2 revenue fell 1% year over year to $687 million; adjusted EBITDA rose 7% to $118 million. Net loss was $256 million due to refinancing and tax expenses.
- Air distribution weakness: Distribution revenue dropped $5 million to $546 million as air bookings slowed, with second-half growth now forecast at 4–10% versus a prior 20%.
- Segment pressures: Sabre’s exposure to corporate, government, and military travel—segments underperforming industry averages—continues to weigh on results.
- Hotel distribution growth: Bookings rose 2% in the quarter, with the air booking attachment rate improving 100 bps to 34%.
- IT solutions decline: Revenue fell $3 million to $141 million due to customer attrition.
- Product delay: Low-cost carrier solution launch postponed by six months to early 2026.
- Asset sale completed: Hospitality solutions business sold to TPG for $1.1 billion, strengthening the balance sheet.
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