Sabre Improving Its Liquidity Profile Amid an Uncertain Economic Landscape

Despite near-term economic growth concerns emanating from tariff uncertainty, we expect Sabre to reduce its debt to adjusted EBITDA toward 6 times by the end of 2025 from about 10 times in 2024, using proceeds from the prudent sale of its hospitality solutions business (scheduled to close in late 2025). We maintain our stance that Sabre will hold its position in global distribution systems, or GDS, over the next 10 years. This view is driven by a gradual recovery in corporate travel and Sabre's leading network of airline content and travel agency customers as well as its solid position in technology solutions for these carriers and agents. Sabre's 30%-plus GDS air transaction share is the second largest of the three companies (behind narrow-moat Amadeus and ahead of privately held Travelport) that together control about 100% of market volume.