Orbitz posts $8m in net income in Q4

Orbitz Worldwide Inc has posted a quarterly net profit in the fourth quarter, reversing a year-ago loss.

Published: 25 Feb 2009

Orbitz Worldwide Inc has posted a quarterly net profit in the fourth quarter, reversing a year-ago loss.

The online travel company’s fourth quarter net revenue decreased nine percent to $180 million on gross bookings of $2.2 billion. Net income was $8 million for the quarter compared with a net loss of $11 million for the fourth quarter of 2007.

“During the fourth quarter, global economic softness significantly impacted our performance and created more uncertainty for the entire travel industry,” said Barney Harford, president and CEO of Orbitz Worldwide.

“In response to this softness, we took immediate steps in both November and January to reduce costs, and as a result, we believe Orbitz Worldwide is better positioned to manage through this challenging environment.”

Air net revenue was $67 million for the fourth quarter of 2008, down 17 percent.

Its non-air and other net revenue, which consists primarily of car, hotel, dynamic packaging, advertising and travel insurance revenue, was $113 million for the fourth quarter of 2008, down three percent. Bookings for all non-air products were soft in the quarter except for dynamic packaging, which continued to grow at a solid rate.

Domestic net revenue was $153, which was flat with the fourth quarter of 2007. International net revenue was $27 million for the fourth quarter of 2008, a decrease of 39 percent. Weak economic conditions in Europe and lower air margins contributed to the net revenue decline in the quarter.

For the full year, Orbitz Worldwide's net revenue increased one percent to $870 million versus $859 million in the prior year. The company reported a net loss of $299 million, which included a $297 million non-cash charge for the impairment of goodwill and intangible assets, or ($3.58) per diluted share for 2008 compared with a net loss of $85 million for 2007. Adjusted EBITDA was $136 million for the full year, a decrease of six percent compared with 2007.

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