Sabre reported an operating loss of $384 million in the second quarter, compared to operating income of $82 million this time last year, a decrease of 568%. Revenue tumbled 92%, to $83 million, compared to $1 billion the year prior.
The declines were mostly attributable to the coronavirus crisis. Restructuring charges of $48 million related to cost-savings action also contributed. At the same time, the declines were partially offset by a savings in incentive payments to travel agencies ($366 lower than the year prior), reduced headcount-related expenses and a decline in the cost of technology because of lower transaction volumes.
On Friday morning's financial earnings call, Sabre CEO Sean Menke said cancellations peaked in March and air bookings troughed in April, when cancellations outpaced new bookings. Some improvements were realized in May and June. North America was showing the strongest indications of recovery, but that was impacted by a spike in Covid-19 cases. However, Menke said, that has leveled "and begun a slight growth trajectory again."
In July, Sabre moved to its new organizational structure, combining its airline and agency businesses. It moved "from a business unit alignment to a functional alignment," Menke said. He expects the change to result in a better customer experience and cost efficiencies.
The company has also been right-sized by a workforce reduction of around 15%; Sabre had about 9,000 employees pre-coronavirus.
Sabre stock had declined more than 9% before noon Friday.