Sabre Holdings Corp. (BBB+/Negative/--) reported a profit from continuing operations of $84 million in the first quarter of 2002, versus $63 million in the prior-year period. Standard & Poor's ratings and outlook on Sabre remain unaffected by this announcement. The company's revenues declined by 5.9%, due primarily to a continuing reduction in travel booking levels, which declined by 13.8% in the quarter. However, the company did make progress in its cost-reduction program, reducing expenses by 13%. Going forward, Sabre expects travel to rebound gradually, with bookings declining by 7% for 2002, but revenues increasing by 1%-5%. However, if booking and revenue performance is weaker than expected, Sabre's credit measures could be negatively impacted.
