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Orbitz shares dip after American pulls fares
Online travel giant Orbitz Worldwide Inc has suffered a dip in its share price after American Airlines pulled its fares from all Orbitz powered websites.
American’s merger partner US Airways will follow suit and remove its fares from Orbitz on September 1.
The carriers’ decision comes after a long-running dispute over fees Orbitz charges to list its fares.
Shares of Orbitz Worldwide Inc. fell almost 5% at the close, rallying after an initial drop of almost 8. 5% earlier in the day.
Fares have been removed on all Orbitz websites including CheapTickets.com and ebookers.com.
Both Orbitz and American jointly said corporate clients using Orbitz for Business to book business travel will not be affected.
"While our fares are no longer on Orbitz, there are a multitude of other options available for our customers, including brick and mortar agencies, online travel agencies and our own websites," said Scott Kirby, president of American.
"We have worked tirelessly with Orbitz to reach a deal with the economics that allow us to keep costs low and compete with low-cost carriers," he said.
"Our sites offer hundreds of airlines which are eager to capture the revenue American is choosing to forego and we will continue to show our customers a broad range of flight options to thousands of destinations in the U.S. and worldwide," Orbitz said in a statement.
"The net revenue we earn from the distribution of airline tickets would be negatively impacted, which could have a material adverse effect on our business," the statement read.
Tickets already booked through Orbitz are still valid but any changes must be carried out direct with the airlines.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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