Orbitz Worldwide said its quarterly net loss widened on a goodwill impairment charge while the total value of its bookings decreased by 17 percent.

Published: 07 May 2009

Orbitz Worldwide said its quarterly net loss widened on a goodwill impairment charge while the total value of its bookings decreased by 17 percent.

The company reported a net loss of $336 million, which included a $332 million non-cash charge for the impairment of goodwill and intangible assets, compared with a net loss of $15 million in the first quarter of 2008.

Net revenue was $188 million, down 14 percent from $219 million for the first quarter of 2008. Approximately $11 million of the $31 million year-over-year decline in net revenue was due to the impact of foreign currency fluctuations.

Global gross bookings were down 17 percent. Air gross bookings declined 20 percent and non-air gross bookings decreased 10 percent.

“In response to the challenging economic climate, we have re-examined every aspect of our business,” said Marsha Williams, CFO of Orbitz Worldwide.

Williams added that the company has continued to scour for further opportunities to enhance operating efficiency.

“We have also significantly restructured our approach to online marketing, bringing greater emphasis to marketing efficiency. As a result, our Adjusted EBITDA grew by 39 percent in the first quarter,” added Williams.

Going forward, Orbitz is planning to introduce a number of new media monetisation initiatives on its websites.

“We believe the combination of these new initiatives, our cost reduction actions, our improved marketing efficiency, and our significant uptick in air volume since removing fees, should enable us to offset most of the impact of the air and hotel fee reductions through the balance of the year,” said Williams.

Read more: Orbitz