Sabre Corp
NASDAQ:SABR
Sabre Corp
Sabre Corporation, a pivotal player in the travel technology landscape, began its journey as a project between American Airlines and IBM in the 1960s, revolutionizing the booking process in aviation. Over the decades, Sabre has metamorphosed from a trailblazing airline reservation system to a formidable force in the global travel marketplace. Its core lies in the development and operation of computerized reservation systems, which serve as a backbone for airlines, travel agencies, and various other travel-related businesses. By streamlining ticketing, schedule adjustments, and inventory management, Sabre drives efficiency and connectivity in the travel industry. This integrated approach allows it to harness data, cater to customer preferences, and foster innovative solutions that enhance the overall travel experience, making it indispensable to the industry’s ecosystem.
At the heart of Sabre’s revenue model is its symbiotic relationship with travel suppliers, from airlines and hotels to car rental agencies. The company primarily earns money through the fees charged for each booking or transaction facilitated by its platform. These transactions span a wide array of services, such as booking flights, hotel reservations, and securing rental services, positioning Sabre as a crucial intermediary between travel service providers and travelers. Additionally, Sabre diversifies its income by offering software solutions that assist airlines and hospitality businesses in managing operations, optimizing schedules, and improving customer engagement. This dual strategy not only ensures a steady flow of revenue but also positions Sabre as a technological innovator driving the evolution of travel management services worldwide.
Sabre Corporation, a pivotal player in the travel technology landscape, began its journey as a project between American Airlines and IBM in the 1960s, revolutionizing the booking process in aviation. Over the decades, Sabre has metamorphosed from a trailblazing airline reservation system to a formidable force in the global travel marketplace. Its core lies in the development and operation of computerized reservation systems, which serve as a backbone for airlines, travel agencies, and various other travel-related businesses. By streamlining ticketing, schedule adjustments, and inventory management, Sabre drives efficiency and connectivity in the travel industry. This integrated approach allows it to harness data, cater to customer preferences, and foster innovative solutions that enhance the overall travel experience, making it indispensable to the industry’s ecosystem.
At the heart of Sabre’s revenue model is its symbiotic relationship with travel suppliers, from airlines and hotels to car rental agencies. The company primarily earns money through the fees charged for each booking or transaction facilitated by its platform. These transactions span a wide array of services, such as booking flights, hotel reservations, and securing rental services, positioning Sabre as a crucial intermediary between travel service providers and travelers. Additionally, Sabre diversifies its income by offering software solutions that assist airlines and hospitality businesses in managing operations, optimizing schedules, and improving customer engagement. This dual strategy not only ensures a steady flow of revenue but also positions Sabre as a technological innovator driving the evolution of travel management services worldwide.
Solid Quarter: Sabre met or exceeded financial guidance in Q4 2025, with double-digit adjusted EBITDA growth and strong cash flow.
AI Leadership: Management emphasized Sabre’s central role in powering AI-driven travel, highlighting proprietary technology, large-scale data, and new agentic AI APIs.
Revenue Growth: Full-year revenue was $2.8 billion, up 1% YoY, with mid-single-digit growth expected for 2026 and 2027.
Debt Reduction: Over $1 billion in debt was paid off in 2025; more than 90% of debt now matures in 2029 or later.
Free Cash Flow: 2026 free cash flow is expected to be negative $70 million due to restructuring, but positive free cash flow is forecast for 2027.
AI Partnerships: New partnerships with PayPal, MindTrip, and Virgin Australia showcase Sabre’s agentic AI capabilities and first-mover advantage.
NDC Momentum: NDC bookings rose to 4% of air distribution; adoption expected to accelerate with 42 carriers now live.
Cost Discipline: Inflation offset program underway, targeting flat tech and SG&A spend despite wage and tech cost pressures.
