Vietravel Airlines renews partnership with Sabre for growth

SINGAPORE and HUẾ, Vietnam - Vietravel Airlines has extended its Passenger Service System (PSS) contract with Sabre Corporation (NASDAQ: SABR) for another five years, affirming its reliance on Sabre’s Radixx technology to bolster its expansion plans. Sabre, with annual revenues of $3.02 billion and a market capitalization of $1.07 billion, has established itself as a key player in travel technology despite facing current profitability challenges. This move follows T&T Group’s strategic investment in Vietravel Airlines in December 2024, aiming to transform the carrier into a leading regional airline with a focus on passenger and cargo services.

The renewed agreement will see Vietravel Airlines continue utilizing Sabre’s Radixx suite, which includes Radixx Res for core passenger services, Radixx EzyCommerce for digital customer interaction, Radixx Go for airport operations, and Radixx Insight for data analytics. According to InvestingPro data, Sabre maintains impressive gross profit margins of 58.51%, demonstrating the efficiency of its technology solutions. These tools are designed to support the airline’s scaling efforts and improve passenger service. Additionally, the integration of Sabre’s Payment Gateway with the Radixx PSS offers customers a wider range of payment options.

Vu Dao Duc, CEO of Vietravel Airlines, expressed confidence that Sabre’s technology will be instrumental in the airline’s growth trajectory. Nico Stoman, Head of Radixx Sales and Account Management at Sabre, highlighted the renewal as a testament to Radixx’s value and Sabre’s commitment to supporting airlines with scalable, retail-driven solutions.

Vietravel Airlines, which began operations on January 25, 2021, has been recognized by Skytrax and has received multiple awards from the World Travel Awards and the Asia Pacific Enterprise Awards. The partnership with Sabre, whose stock has experienced a challenging period with a 26.4% decline over the past six months, is expected to support the airline’s continued pursuit of service excellence and market expansion. For deeper insights into Sabre’s financial health and growth potential, including 8 additional ProTips, explore InvestingPro’s comprehensive analysis tools.

This extended collaboration is based on a press release statement and reflects the ongoing efforts of Vietravel Airlines to leverage technology in its growth strategy.

In other recent news, Sabre Corporation reported its first-quarter 2025 earnings, showing flat revenue at $777 million, which was below the forecast of $793.4 million. The company’s earnings per share came in at zero, missing the projected $0.002. Despite the revenue shortfall, Sabre achieved a 5% increase in adjusted EBITDA, reaching $150 million. Sabre has also announced an agreement to sell its Hospitality Solutions business for $1.1 billion, with plans to use the proceeds primarily to pay down debt. Additionally, Sabre has appointed Jennifer Catto as the new Executive Vice President and Chief Marketing Officer to lead its global marketing strategy. In financial maneuvers, Sabre plans to offer $975 million in senior secured notes through its subsidiary, Sabre GLBL Inc., to address outstanding borrowings and other debts. Sabre reaffirmed its guidance for high single-digit revenue growth in 2025 and expects pro forma adjusted EBITDA to exceed $630 million for the full year. The company’s strategic moves include focusing on core airline IT and travel marketplace platforms, aiming to enhance shareholder value.

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