Yahoo Finance Sabre (SABR), IAG Expand Relationship With New Distribution Deal
Sabre Corporation SABR, a global travel industry technology provider, has entered a multi-year distribution agreement with International Airlines Group (“IAG”). This collaboration aims to bolster their existing partnership and advance modern travel retailing practices.
Under the agreement, Sabre-connected travel buyers and agencies will gain the capability to sell traditional EDIFACT content and access competitive NDC (New Distribution Capability) offers from IAG's airlines, including British Airways, Iberia, Aer Lingus and Vueling. The expanded content encompasses Additional Price Points and ancillaries, offering travel agencies a broader spectrum of options for comparison and selection.
This move aligns with the evolving landscape of modern travel retailing, emphasizing the differentiation of airline offerings and enhancing personalized experiences for travelers. Sabre and IAG are jointly committed to advancing the NDC standard, a pivotal element in the industry's progression toward modern airline retailing through offers and orders.
The partnership exemplifies IAG's digital retailing strategy, providing customers with increased access to NDC content. Sabre's involvement underscores its dedication to creating value and supporting the diverse interests of the global travel ecosystem.
Roshan Mendis, the chief commercial officer at Sabre Travel Solutions, noted that the travel industry is poised for a new era of personalized retailing, promising improved traveler experiences and new revenue opportunities for airlines and travel agencies. The collaboration with IAG signifies a shared commitment to driving the industry forward.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
Sabre Continues Grabbing New Distribution Deals
IAG has become the latest addition to a group of 17 airlines collaborating with Sabre to offer their NDC content in the market. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. All these companies have partnered or renewed the partnership with Sabre over the trailing 12 months.
In March 2023, the company announced that Sabre-connected travel buyers, agencies and developer partners will be able to access American Airlines’ NDC content through Sabre Red 360, Sabre APIs and GetThere. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
In April 2023, United Airlines introduced its NDC offers on Sabre’s GDS. This enabled travel buyers to access enhanced options, including UAL's continuous pricing content, featuring the most competitive fares available through Sabre Red 360, Sabre APIs and GetThere.
Sabre’s last few quarters’ financial results reflect that the company is moving toward stabilization after the severe impacts of the pandemic-led global economic crisis. The company recorded revenues of $748 million for the third quarter of 2023, which is significantly higher than the revenues of $663.4 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, the company's Travel Solutions division benefited from favorable rates as international and corporate bookings continued to improve.
Zacks Rank and a Stock to Consider
American Airlines and United Airlines each carry a Zacks Rank #3 (Hold) at present, while Sabre has a Zacks Rank #4 (Sell). Shares of UAL, AAL and SABR have plunged 7.2%, 6.4% and 32.1%, respectively, over the past year.
A better-ranked stock from the broader technology sector is NVIDIA Corporation NVDA, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for NVDA’s fourth-quarter fiscal 2024 earnings has been revised by a penny northward to $4.49 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 2 cents to $12.31 in the past seven days.
NVIDIA's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 19%. Shares of NVDA have surged 240.6% over the past year.
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