Orbitz Reports $336 Million First Quarter Net Loss

Orbitz reported net revenue of $188 million for the first quarter of 2009, down 14 percent from $219 million for the first quarter of 2008. Approximately $11 million of the $31 million year-over-year decline in net revenue was due to the impact of foreign currency fluctuations.

The company reported a net loss of $336 million, or $4.02 per diluted share, for the first quarter of 2009, which included a $332 million non-cash charge for the impairment of goodwill and intangible assets, compared with a net loss of $15 million, or $0.18 per diluted share, in the first quarter of 2008.

Adjusted EBITDA increased 39 percent to $28 million for the first quarter of 2009. This year-over-year increase in Adjusted EBITDA was driven by the significant operating cost reductions made in the fourth quarter of last year and in early 2009 and a much stronger focus on marketing efficiency.

For the first quarter of 2009, global gross bookings were down 17 percent (14 percent on a constant currency basis) compared with the first quarter of 2008. Air gross bookings declined 20 percent (17 percent on a constant currency basis) and non-air gross bookings decreased 10 percent (6 percent on a constant currency basis) compared with the first quarter of 2008.

Domestic gross bookings decreased 13 percent compared with the first quarter of 2008. International gross bookings decreased 36 percent (20 percent on a constant currency basis) for the first quarter of 2009 compared with the same quarter in 2008.

Net revenue for the first quarter of 2009 was $188 million, a decrease of 14 percent (10 percent on a constant currency basis) from $219 million in the first quarter of 2008, with domestic net revenue down 7 percent and international net revenue down 39 percent (23 percent on a constant currency basis).