$12m Flight Centre hit to Travelport

$12m Flight Centre hit to Travelport

TRAVELPORT has started to see the impact of Flight Centre’s switch to rival Sabre (TD 11 Apr 2017), with Travelport’s most recent quarterly results confirming local revenue declined 6% or US$9 million (A$12m) for the three months to 31 Mar.

The US Securities and Exchange Commission filing said the drop was mainly due to a 16% decrease in Reported Segments – but interestingly average revenue per segment rose by 11%.

“Reported Segments decreased due to loss of a large travel agency in the Pacific region, partially offset by growth in India,” the company said.

On a yearly basis, assuming equal quarterly revenue, the total revenue impact for Travelport could be close to $50m.

For the quarter Travelport’s net revenue rose 4% to US$677m, with net income of US$59m.

Source: traveldaily