Declines in federal and military travel underscore the industry’s dependence on government demand
Nov 6, 2025
Sabre is reporting a notable decline in air distribution bookings due to the ongoing U.S. government shutdown, particularly affecting government and military travel. While recent quarters showed overall recovery in the company’s travel volumes, the shutdown has disrupted a key segment and is expected to continue weighing on air bookings into early 2026.
Key takeaways
- Government and military travel slump: Bookings tied to federal agencies and military travel—about 4% of Sabre’s air distribution volume—saw the sharpest decline.
- Shutdown timing reversed recent gains: Air bookings were up 7% in September, but October saw a downturn as the shutdown disrupted travel approvals and activity.
- Broader travel industry impact: Government-related travel patterns are difficult to replace, putting pressure on airlines and agencies that rely on Sabre’s booking systems.
- Hotel distribution performed better: Hotel bookings rose 6% in Q3 2025, offering a partial offset to weaker air travel results.
- Forecast revised downward: Sabre now expects slower air distribution growth of 6–8% in Q4, with full recovery possible only if the shutdown ends soon—potentially into early 2026.
- Strategic adjustments underway: Sabre is pursuing new distribution models and low-cost carrier solutions, but these will take time to scale and do not immediately replace lost government demand.
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