SINGAPORE and HAINAN, China – In a strategic move to strengthen its international presence, Hainan Airlines has entered into a long-term agreement with Saber Corporation (NASDAQ: ) (NASDAQ: SABR ), a leading technology supplier to the global travel industry with annual revenue of $3 billion and market capitalization of 1.3 billion dollars. The collaboration was set up to improve the Chinese airline’s ability to manage fares on its international routes. According to InvestingPro data, Saber demonstrates strong operating efficiency with impressive gross profit margins of 59.26%.
Hainan Airlines, a 5-star SKYTRAX rating for more than a decade, is working to expand its global network. The partnership with Saber is expected to support this growth by implementing Sabre’s Fares Manager and Contract Manager solutions. These tools will allow the airline to dynamically monitor and adjust international fares, which is critical to maintaining competitive prices and maximizing revenue.
Zhu Li, general manager of the international department in Hainan Airlines’ marketing committee, emphasized the importance of this alliance. “As we continue and introduce new routes, it is critical to have the appropriate pricing structure in our network,” Zhu said. He expressed confidence that Sabre’s technology will support the airline’s growth strategy and commitment to providing competitive value to passengers around the world.
Sabre’s vice president, Rakesh Narayanan, also commented on the agreement, noting the increased agility and precision it will bring to Hainan Airlines’ fare structuring efforts.
Hainan Airlines, founded in 1993, has recently expanded its fleet and route network. The airline, which operates over 1,400 domestic and international routes, aims to build a world-class network in line with China’s Belt and Road Initiative.
The airline’s focus on safety and service quality has been recognized with numerous awards, including the “One Star Flight Safety Diamond Award” from the Civil Aviation Administration of China and a consistent 5-star rating from SKYTRAX since 2011.
Saber Corporation, headquartered in Southlake, Texas, serves customers in more than 160 countries, providing innovative products and technology solutions to connect suppliers and buyers in the travel industry.
This new agreement with Hainan Airlines underscores Sabre’s commitment to driving innovation and success through its technology offerings. The partnership is based on a public statement and aims to facilitate the continued growth of Hainan Airlines in the international aviation market.
In other recent news, Amadeus (BME:) IT Group maintained its market perform rating from Bernstein analysts, who highlighted the company’s strong market position and significant investments in research and development. On the other hand, Bernstein downgraded Saber Corporation from Market Perform to Underperform, citing concerns over the company’s heavy reliance on a slowing Global Distribution System business and challenges brought by rapid technological change in North America.
In recent developments, Saber Corp reported 3% year-over-year revenue growth to $765 million in the third quarter of 2024, and made significant strides in financial restructuring through new secured bonds and changes to loan terms. Despite the stock downgrade, Saber maintains a positive outlook, focusing on strategic investments and cost management, with projections for the fourth quarter of 2024 including expected revenue of approximately $715 million and adjusted EBITDA of approximately $115 million.
Moreover, Saber aims to achieve more than $700 million in adjusted EBITDA and more than $200 million in free cash flow by 2025. While Bernstein remains cautious about Sabre’s financial health, the company’s third-quarter earnings report revealed an increase adjusted EBITDA of 19% compared to the previous year. These are recent developments in both companies.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
