Tag: Booking

Booking Holding CEO pleas for coronavirus aid for airline industry

Booking Holdings CEO Glenn Fogel on Wednesday urged Congress to provide support to the airline industry, suggesting failure to act soon would prevent a swift recovery in travel after the coronavirus situation improves. 

“I do believe the travel industry will come back. As soon as it’s safe to travel, people will start traveling,” Fogel said on CNBC’s “Squawk Alley.” “It’s really a function of how fast it will come back and how much damage to the industry. I see no reason that we should have to wait extra years because we took time putting money to work now.” 

Fogel’s comments came shortly after a spokesman for House Speaker Nancy Pelosi said the California Democrat had spoken with the White House’s lead stimulus negotiator, Treasury Secretary Steven Mnuchin, about a standalone bill to provide aid to the airline industry. 

President Donald Trump on Tuesday night said on Twitter that he would

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Travel Reservation Pair Trade Idea: Long Booking, Short Sabre (NASDAQ:BKNG)

Booking Holdings (BKNG) and Sabre (SABR) are two leading companies in the travel reservation industry. Booking focuses more on consumer buying as the top third-party vacation/destination/hotel/airline/cruise/car rental marketer and online technology reservation company through its Booking.com and priceline.com websites. Sabre, a spin-off of American Airlines (AAL) in 1999, mainly works with businesses on ticketing/reservations to match air travel, local transportation and hotel needs. They both have suffered during the travel recession this year. Sabre revenues are expected to slide -60% in 2020 due to the pandemic economic shutdown, with Booking sales backpedaling -50%. However, the similarities end there.

Booking’s super-high profit margins and cash position are projected to keep the company profitable during the year, while Sabre’s excessive leverage and low margins are producing huge operating losses. I wrote a bullish article on Booking in July explaining the company as the smartest, low-risk way to play a slow rebound

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