Orbitz shares drop after American tickets pulled

By Reuters
Posted Jan. 3 at 4:23 p.m.

The shares of online travel agencies Orbitz and Expedia fell on Monday after Expedia dropped American Airlines tickets from its offerings.

Expedia called its weekend action a response to the airline’s new “anti-consumer” and “anti-choice” commercial strategy.

Expedia shares fell 3 percent to $24.32 in midmorning trading while Orbitz shares slid 0.7 percent to $5.55.

Expedia’s action was the latest in a running feud between American and the Internet travel websites.

American had removed its listings and other features from Orbitz last month, saying it needed to cut distribution costs and that the online travel model prevented it from offering the lowest possible fares.

American, citing a “commercial dispute” for Expedia’s weekend action, on its website suggests customers turn to other travel sites such as Kayak.com or Priceline.com as well as its own Internet site.

“We will continue to negotiate in good faith to reach terms with Orbitz and Expedia that will benefit customers and position each company for sustainable success,” American said in an online statement.

Priceline’s shares rose 3.3 percent to $412.90 and shares of American Airlines’ parent company, AMR Corp, gained 1.8 percent to $7.96.

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  1. Robert Burlingham Jan. 3 at 5:57 pm

    Expedia’s response, that American is anti-consumer and anti-choice, falls a a little flat when one understands it’s Expedia profiting, or not, on the coat-tails of American Airlines. And, AAL has promoted kayak as well for easy to use comparative pricing options.

  2. edlinn Jan. 3 at 6:41 pm

    It will be interesting to see if American’s and United’s fares to the same city continue to somehow always be the exact same price.