Orbitz Worldwide posts net loss of $18m in Q4

Online travel company Orbitz Worldwide reported a net loss of $18 million for the fourth quarter 2009, compared with net income of $8 million for the same period last year.

The net loss in the fourth quarter 2009 was largely due to a non-cash increase in the company’s provision for income taxes due to the valuation allowance established against international deferred tax assets.

Net revenue was $175 million for the fourth quarter 2009, down three percent year over year. Domestic net revenue declined 12 percent while international net revenue increased 48 percent. The net revenue decline was due primarily to the removal of most domestic air booking fees.  Higher transaction volume partially offset the decline in net revenue per transaction.

2009 results

For the year ended December 31, 2009, net revenue was $738 million, down 15 percent from the same period of 2008.  This net revenue decline was due primarily to the removal of most domestic air booking fees and a significant reduction in hotel net revenue due to lower average daily rates, lower hotel booking fees, lower breakage and disappointing results at HotelClub.  Higher transaction volume partially offset the decline in net revenue per transaction. 

The company reported a net loss of $337 million for the full year 2009, compared with a net loss of $299 million for the full year 2008.  

The net loss in both years was due primarily to non-cash goodwill and intangible asset impairment charges.