Airlines See Fuel Costs, Mandates, Customer Loyalty as Top Issues in Sabre Airline Solutions' Global Survey on Key Industry Challenges

While concerns about the environment are growing significantly in international markets, fuel costs dominate all other issues impacting the airline industry.

Industry Impact (When asked to rate on a scale of 1 to 5, with 5 representing significant impact, the percentage of airlines who rated the following issues either 4 or 5 as having the greatest impact from a cost, revenue or operational standpoint)

Fuel costs 94% Government regulations 79% Customer loyalty 75% Security concerns 58% Labor contracts 55% Alliances 50% New entrants 42% Airline mergers 34% Airline bankruptcies 34%

Industry Challenges (When asked to identify the three biggest challenges facing their airline in 2007)

Fuel Costs 91% Customer loyalty 55% Government mandates 40% Security 34% Environmental Impact 25% Safety 19% Mergers 18%

Industry Revenue Impediments (When asked choose the top three biggest revenue impediments to their airline in 2007)

Fuel costs 91% Labor costs 44% Airport costs 43% Distribution costs 39% Government regulations 29% Inability to secure new routes 25% Management costs 20%

Effectiveness of New Revenue Sources

Seat Selection Effective 35% Neutral 24% Not effective 41% In-flight entertainment (movies, earphones, DVD players, etc.) Effective 34% Neutral 26% Not effective 40% Meals Effective 24% Neutral 22% Not effective 54% In-flight comfort items (pillows, blankets, etc.) Effective 17% Neutral 28% Not effective 55%

Change in carrier types by January 2008

Number of low-cost carriers Will increase 68% Will decrease 9% No change 23% Number of regional carriers Will increase 37% Will decrease 26% No change 38% Number of international long-haul carriers Will increase 41% Will decrease 13% No change 46%

Survey demographics

Carrier Type U.S. Major 9% International Long Haul 18% Traditional Flag 25% Regional 20% Low Cost Carrier 10% Hybrid (a) 18% (a) Combined elements of full service with value focused. Headquarter Location North America 32% Europe/Middle East/Africa 36% Latin America 10% Asia 22%

About Sabre Airline Solutions

Sabre Airline Solutions, a Sabre Holdings company, is the world's largest provider of smart, proven, bankable products to help airlines market, sell, serve and operate from planning to execution. The company provides unmatched breadth and depth of integrated, dynamic business solutions delivered by experts to reduce airlines' costs, increase revenue and optimize the customer experience.

More than 250 airlines use its broad portfolio of 112 decision-support tools to increase revenues and improve operations. More than 100 airlines rely on Sabre Airline Solutions for passenger management solutions, while a similar number have turned to the company's consulting group for strategic, commercial and operational advice. More than 650 contracts worldwide were signed in 2006 for Sabre Airline Solutions' leading technology solutions.

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