Orbitz wounded in distribution dispute
Online travel agent and distributor Orbitz, which also operates Cheaptickets.com, reported a 4Q2010 net loss of USD78 million as it suffers from the ongoing dispute with American Airlines over air fare distribution. Revenue in the period was up 4% year-on-year, to USD182.4 million.
The company has signaled that removing American Airlines from its website has hurt business. CEO Barney Harford said the airline is suffering too, but it Orbitz has recognised the importance of reaching an agreement with American over the dispute. Shares in Orbitz finished trading on Wednesday 3.9% lower. Other distributors were also down, with Expedia dropping 2.4% and Amadeus down 1.3%
Selected Others daily share price movements (% change): 16-Feb-2011