Orbitz Reports First Quarter 2011 Loss

Orbitz Worldwide, Inc. announced results for the first quarter ended March 31, 2011. It included a reported net loss of $10.9 million for the first quarter 2011 compared with a net loss of $5.3 million for the first quarter 2010.

Global gross bookings increased 2 percent (one percent on a constant currency basis) year over year. This increase was due primarily to higher volume for the company's e-bookers and Orbitz for Business brands and higher airfares and average daily rates for hotel rooms for its domestic leisure brands. Lower air and vacation package volume for the company's domestic leisure brands partially offset this increase, Orbitz said.

“We're not satisfied with our overall first quarter results; performance across our individual businesses in the quarter was mixed,” said Barney Harford, CEO of Orbitz Worldwide. “While e-bookers and our private label distribution channel delivered strong performance, our U.S. consumer business under performed. We are optimistic about the strategic investments we're making. We have seen substantial returns on our technology and marketing investments with e-bookers, and we feel positive about the benefits the global platform will bring to HotelClub, Orbitz and our other consumer brands as we complete our migration work.”

Net revenue was $184.9 million for the first quarter 2011, a decrease of 1 percent (3 percent on a constant currency basis) year over year. Net revenue was down primarily due to a decline in vacation package revenue and a decline in revenue from the company's airline hosting business, Orbitz said. This decline was partially offset by an increase hotel revenue due to higher hotel average daily rates and higher breakage revenue.

Air net revenue for the company's domestic leisure brands was down 5 percent year over year primarily due to lower air transactions, partially offset by higher net revenue per airline ticket, Orbitz said.

The lower air transactions were due primarily to actions taken by certain airlines to limit the marketing of their fares on meta-search sites, such as Kayak, fare structure changes implemented by a major airline, higher airfares and, to a lesser extent, the lack of American Airlines' content on the company's Orbitz.com site, the company said.

Visit www.orbitz.com.


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