Aeromexico boosts retailing with Sabre’s AI solutions

Published 05/05/2025, 13:46
Aeromexico boosts retailing with Sabre’s AI solutions

SOUTHLAKE, Texas and MEXICO CITY - In a move to enhance its retailing capabilities, Mexico’s flagship carrier Aeromexico has expanded its long-standing partnership with Sabre Corporation (NASDAQ: SABR), a global leader in travel technology with a market capitalization of $942 million and impressive gross profit margins of 59%. The airline will integrate Sabre’s advanced AI-driven solutions, SabreMosaic Air Price IQ and SabreMosaic Ancillary IQ, to offer personalized pricing and ancillary services, aiming to optimize revenue and improve customer experience. (InvestingPro analysis reveals 8 additional key insights about Sabre’s market position and growth potential.)

Aeromexico, which has been working with Sabre for 14 years, is set to benefit from the new agreement by leveraging real-time data and artificial intelligence to dynamically adjust airfare pricing and tailor ancillary offers to traveler behavior. Despite carrying significant debt of $5.1 billion, Sabre has maintained steady revenue growth of 4.19% over the last twelve months. Mario Baez, Vice President of Revenue Management at Aeromexico, emphasized the importance of personalized passenger experiences and revenue optimization through this enhanced partnership.

Sabre’s innovative SabreMosaic platform, underpinned by Google’s AI and cloud architecture, allows airlines to dynamically create, sell, and deliver personalized content to travelers. This collaboration with Google aims to introduce generative AI applications to the market, furthering the technological advancement of the airline industry.

The adoption of these solutions comes as Aeromexico celebrates 90 years of operations, having recently been recognized as the most punctual airline in 2024 and the first two months of 2025. The airline continues to focus on operational excellence and customer satisfaction, with Sabre’s technology playing a crucial role in achieving these objectives.

Gary Stone, Vice President and LATAM Regional General Manager at Sabre, highlighted the shared commitment to innovation between Sabre and Aeromexico. He remarked that as the industry evolves, airlines require intelligent, data-driven solutions to stay competitive and deliver highly relevant travel experiences. Analysts maintain an optimistic outlook for Sabre, with price targets ranging from $3 to $7.25 per share. Get comprehensive insights and detailed analysis with InvestingPro’s exclusive research report, part of their coverage of over 1,400 US stocks.

Sabre Corporation, headquartered in Southlake, Texas, serves customers in over 160 countries. The company is dedicated to solving complex challenges in the travel industry, offering technology solutions for airlines, hoteliers, agencies, and other travel partners.

This strategic partnership between Aeromexico and Sabre is based on a press release statement and reflects the ongoing trend of airlines adopting advanced technologies to improve retailing strategies and customer service.

In other recent news, Sabre Corporation announced a definitive agreement to sell its Hospitality Solutions business to TPG Capital for $1.1 billion in cash. The transaction is expected to close by the end of the third quarter of 2025, pending regulatory approvals and customary closing conditions. Sabre plans to use approximately $960 million of the net proceeds to reduce its debt, which is anticipated to strengthen the company’s balance sheet. Moody’s has affirmed Sabre’s B3 rating and upgraded its outlook to stable, citing the sale as credit positive and expecting significant deleveraging over the next 12 to 18 months. Furthermore, Sabre’s board approved a new 2025 Omnibus Incentive Compensation Plan, which includes cash awards and stock options, and elected ten directors during its annual stockholders meeting. The company also extended its strategic partnership with Preferred Hotels & Resorts, incorporating new retailing and gift card solutions to enhance revenue. These developments reflect Sabre’s ongoing efforts to optimize its core business areas and improve its financial structure.

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