Orbitz posts bigger 1st-quarter loss on weak bookings

CHICAGO—Online travel company Orbitz Worldwide Inc. said Wednesday it posted a larger first-quarter loss, as higher costs and weak bookings in the U.S. tugged down results.

For the period that ended March 31, Orbitz, which went public in July, posted a bigger loss of $15 million, or a loss of 18 cents per share, from a loss of $10 million a year earlier. A per share figure was not provided for the year-ago quarter.

Earnings, when adjusted, declined to $21 million, compared with $30 million a year earlier, Orbitz said.

Sales rose about 3 percent to $219 million from $212 million a year earlier.

Analysts polled by Thomson Financial forecast a 4-cent per share profit and on sales of $213.9 million.

"We anticipated that the first quarter of 2008 would be a difficult comparison against a very strong 2007 first quarter," Chief Executive and President Steven Barnhart said in a statement.

Gross bookings were flat at $2.9 billion, but increased 41 percent internationally, helped by a weak U.S. dollar. Results were especially strong in Asia-Pacific markets, such as Australia and Japan.

However, domestic bookings declined 6 percent in the first quarter to $2.4 billion.

Marketing expenses rose 5 percent to $85 million in the first quarter. Selling, general and administrative expenses rose 10 percent, as Orbitz hired more people to fill positions for its hotel sourcing team, along with financial and legal openings.

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