Approximately 11% of Sabre's air bookings originate in, or transit through, the Middle East.
That, combined with fuel supply and price dynamics as well as softening leisure travel, totaled a 7 percentage point headwind to Sabre's total air distribution bookings in March, CEO Kurt Ekert said Thursday on a financial earnings call.
However, that decline of air bookings was offset by strong performance in the Americas, which saw about 7% growth in March as well as steady corporate travel volumes throughout the first quarter.
That all contributed to flat air distribution in March, Ekert said, a trend that continued into April.
In comparison, air bookings were up around 9% in the first two months of the year.
Ekert didn't offer specifics on the softening of leisure travel but he did say it performed strongly earlier in the year. The softening happened in March and April, but the segment is "still holding up relatively well."
Q2 predictions
Going forward, Sabre is operating under the assumption that the Middle East conflict will subside during the second quarter of the year, and fuel prices will normalize throughout the summer and fall.
"Based on these assumptions, we expect second-quarter air distribution bookings to be near flat, followed by a phased improvement, with conditions returning to a more normalized environment by the fourth quarter," Ekert said.
Despite a quarter that was up and down regionally, Sabre outperformed expectations. Revenue was up 8% year over year to $760 million, and adjusted Ebitda was up 21% to $159 million. Sabre recorded an operating income of $116 million, up 27% from the same quarter last year.
Its total air distribution bookings were up 6%, the highest growth rate Sabre has seen in more than two years. Ekert said Sabre's data indicates the company's metric outpaced the industry overall.
"We are encouraged by the continued momentum we are seeing from our growth strategies," he said.
Tags: air distribution bookings Kurt Ekert Sabre Middle East