Standard & Poor's said today that Sabre Holdings Corp. (BBB+/Negative/--) now expects global travel bookings to decline by only 20% in the fourth quarter of 2001 versus the previously expected 30% after the events of Sept. 11, 2001. As a result, the company expects to be marginally profitable, excluding special items, in the fourth quarter. The company also indicated that it expects bookings to decline by another 7% in 2002, resulting in revenue growth of only 1% to 5%. However, to offset a portion of the revenue erosion, Sabre has reduced costs by $100 million. While the current level of decline in booking trends and the cost reductions are positive, the risk still exists that bookings could remain weaker than
