SOUTHLAKE, Texas, 18 February 2021: The unprecedented impact of the Covid-19 pandemic is reflected in the declared operating loss of USD988 million on Sabre Corporation balance sheet for the year ending 31 December.
The B2B global booking system for airlines announced on Wednesday its financial results for the fourth quarter and year ended 31 December 2020.
For the full year 2020, Sabre suffered a consolidated revenue decrease of 66% to USD1.3 billion, compared to USD4 billion for the prior year. The decline in revenue was driven by unprecedented reductions in global air, hotel and other travel bookings due to the Covid-19 pandemic.
The operating loss stood at USD988 million compared to an operating income of USD363 million in 2019.
Other items attributing to the massive operating results included USD86 million in restructuring charges related to severance benefits and the closure of some office locations, a USD45 million increase in the provision for expected credit losses and a USD9 million impairment charge.
Net loss attributable to common stockholders totalled USD1,280 million, versus net income of USD159 million in 2019.
“In light of the Covid-19 pandemic, 2020 presented the greatest challenges ever faced by the global travel industry, with global air and hotel bookings down more than we have seen in any prior year. As the impact of the Covid-19 virus spread, we took quick and decisive actions to improve our financial position. We reduced our go-forward annual costs by approximately USD200 million, which represents significant savings against our 2019 cost base. We added liquidity, extended our debt maturities and ended the year with a cash balance of USD1.5 billion,” said Sabre president and CEO, Sean Menke.
Sabre gained USD10 million resulting from the sale and leaseback of its headquarters buildings, which was completed for a net aggregate sale price of USD69 million during the fourth quarter of 202O.
Sabre maintains its regional head office for the Asia Pacific in Singapore.
Looking forward the CEO said: “Despite the challenges that 2020 presented, the year also included major advancements in our technology transformation and modernization, which is expected to reduce our operating costs by more than USD100 million per year starting in 2024. We believe that after the effects of the COVID-19 pandemic recede, we will be ready with a more profitable cost structure, strong customer engagement and innovations to advance the future of travel.”
For the full financial report and results see: