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Orbitz's revenue grows but loss widens

Home » North America » Orbitz's revenue grows but loss widens

Published: 13 Nov 2008

Orbitz Worldwide Inc. has shared that its third-quarter loss widened and it plans to cut its US work force by 10 percent.

The online travel company posted a net loss of $287 million, compared with a loss of $32 million in the same period a year earlier. Excluding one-time charges, the company said, its net income would have come to $43 million, flat from the year-ago period.

Revenue grew to $240 million from $221 million. Gross bookings in the third quarter increased four percent to $2.7 billion as international gross bookings grew 16 percent to $421 million.

"Our businesses performed solidly in the third quarter despite the cutbacks in US airline capacity. However, beginning in October, we have experienced a slowdown in all of our businesses around the world," said Orbitz chief executive Steve Barnhart.

The online travel agency posted a third-quarter loss due to an impairment charge and said its outlook for the fourth quarter has deteriorated because of the weaker economy.

The company said it plans to cut its US work force by 10 percent -- roughly 100 jobs -- by the end of 2008, generating $20 million in annualised savings.

For the first nine months of 2008, net revenue increased four percent to $690 million, up from $662 million for the first nine months of 2007. The company reported a net loss in the first nine months of 2008 of $307 million or $3.69 per share, compared to a net loss of $74 million in the first nine months of 2007.

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