Orbitz narrows 2nd-quarter loss as bookings rise, particularly in the international market

CHICAGO (AP) — Online travel company Orbitz Worldwide Inc. said Wednesday that it narrowed its loss in the second quarter as bookings rose.The company posted a loss of $5 million, or 6 cents per share, compared with a loss of $32 million in the same period last year, before new shares were issued.

Revenue increased to $231 million from $229 million.

Analysts surveyed by Thomson Financial, on average, forecast a loss of 3 cents per share on sales of $266.7 million.

Orbitz said bookings rose 4 percent to $3 billion. Bookings from international operations increased 41 percent to $476 million, while domestic bookings fell 1 percent to $2.6 billion.

Air net revenue was $90 million, down 13 percent from $103 million last year because of a decline in domestic volume.

Non-air and other net revenue, which consists of hotel, car, dynamic packaging, advertising and insurance revenue, was $141 million, up 12 percent from $126 million in the year-ago period.

“We continue to focus on shifting our business mix away from air,” said Chief Executive Steven Barnhart in a statement.

Management said in a conference call that leisure air travel within the United States accounts for 21 percent of its net revenue, a figure that the company continues to shrink as the airline industry suffers due to a sluggish economy. In the first quarter, leisure travel in the United States accounted for 25 percent of total revenue.

Orbitz shares lost 15 cents, or 2.6 percent, to $5.60 in afternoon trading.

Source : Yahoo Finance