Orbitz posts profit, gets investments

Orbitz posts profit,, but 3Q sales drop 22 pct on removal, reduction of fees

• On 10:32 am EST, Thursday November 5, 2009

CHICAGO (AP) -- Online-travel company Orbitz Worldwide Inc. said Thursday it turned a profit in the third quarter, after charges hurt results a year earlier.

Separately, the company said it received equity investments totaling $100 million from PAR Investment Partners and Blackstone-controlled Travelport.

Orbitz said it earned $7 million, or 8 cents per share. That fell shy of the profit of 12 cents per share that analysts on average expected, according to a survey by Thomson Reuters. A year ago, Orbitz reported a loss of $287 million, or $3.44 per share, weighed down by a $297 million impairment charge on intangible assets.

Revenue fell 22 percent, to $187 million, while analysts expected $202 million.

Orbitz blamed the revenue drop on the removal of its air-booking fees and a reduction in hotel-booking fees.

Revenue from air and non-air bookings declined, though the company said the total number of air bookings rose 27 percent.

Orbitz fell 50 cents, or 9.2 percent, to $4.91 in morning trading. The shares are up 39 percent for the year.