Dow Jones Newswires | Orbitz Worldwide Inc. significantly
narrowed its loss in the first quarter — its second-straight period in
the red — absent $331.5 million in 2009 write-downs partly related to
declines in the online travel company’s stock price. The results beat
analysts’ expectations, and Orbitz also reported significantly stronger
bookings.

Meanwhile, Orbitz projected a 3 percent to 6 percent increase in revenue for the second quarter and a 10 percent to 20 percent decrease in adjusted earnings before income tax, depreciation and amortization. Analysts anticipated a 9 percent revenue increase to $205 million, according to Thomson Reuters.

A number of companies have reported improving travel trends in the latest quarter, including a string of major airlines and hotel companies noting an upturn in business travel.

Last year most online travel agencies such as Orbitz, which allows customers to book hotels and flights at discount rates through its site, reduced booking and other fees to attract consumers. Online travel sites also offering some price guarantees and more package deals.

Orbitz reported a loss of $5.3 million, or 5 cents a share, compared with a prior-year loss of $336.2 million, or $4.02 a share. Analysts polled by Thomson Reuters most recently expected a loss of 7 cents.

Revenue decreased 0.7 percent to $187.2 million. The company in February said it expected revenue to drop 2 percent to 6 percent. Excluding currency impacts, the top line fell 3 percent.

Gross bookings rose 24 percent, led by a 41 percent increase internationally. Air gross bookings were up 30 percent.

Shares closed Tuesday at $6.50 and were inactive premarket. The stock is down 11 percent this year, underperforming the broader market.