Sabre Holdings Corp. reported that its second quarter 2006 revenue was up 17 percent year-over-year and second quarter 2006 free cash flow was $155 million, up 66 percent year-over-year, with cash flow from operations of $179 million.

The company said that Travelocity revenue was up 63 percent and gross travel booked was up 58 percent year-over-year. Sabre reported revenue for the second quarter of $723 million, up 17 percent, year-over-year.

"We had a strong second quarter both financially and operationally," said Sam Gilliland, chairman and CEO, Sabre Holdings. "We are pleased to see continued strength in cash generation from our businesses and we remain on track to meet our full-year free cash flow projection. We continue to benefit from our strategy of investment in higher growth opportunities while increasing efficiencies in our core business and across our portfolio."

For the second quarter, Travelocity global gross travel booked was $2.7 billion, an increase of 58 percent year-over-year.

Total global revenue for the quarter was $281 million, year-over-year growth of 63 percent. Second quarter revenue from the Sabre Travel Network business was $420 million, a decrease of 2 percent from $429 million in the year-ago quarter. Global transactions in the quarter were 91 million, representing growth of 1 percent year-over-year. Operating income for the Sabre Travel Network business on an adjusted basis was $73 million with an operating margin of 17 percent.

On a GAAP basis, operating income was $65 million with an operating margin of 15 percent. Adjusted EBITDA was $86 million which resulted in a 20 percent adjusted EBITDA margin. Second quarter revenue from Sabre Airline Solutions was $68 million, an increase of 1 percent from $67 million in the year-ago quarter. Operating income for the Sabre Airline Solutions unit on an adjusted basis was $10 million with an operating margin of 15 percent.

Sabre pointed to recent business highlights, which included: the launch of the Efficient Access Solution, the foundation for the company's new portfolio of customizable, end-to-end solutions for travel agents serving the corporate and leisure travel segments. It also signed five-year, full-content agreements with Continental and Alaska Airlines to distribute fares through the Sabre GDS and Travelocity. This is in addition to previous long-term deals signed with AirTran, Delta, Northwest, United, and US Airways. American Airlines, however, remains a notable exception.