Orbitz Shares Jump After 1Q Results, Hotel Deal

CHICAGO (AP) — Shares of Orbitz Worldwide Inc. surged on Wednesday after the online travel company reported a sharply wider first-quarter loss, but announced an aggressive pricing promotion designed to steal market share from its rivals.

Nearly all of the company's loss came from a hefty one-time write-down and investors seemed optimistic. Orbitz shares jumped 37 cents, or 17.5 percent, to $2.48 in afternoon trading. The stock has traded between $1.10 and $8.58 during the past 52 weeks.

For the quarter ended March 31, Orbitz said its loss widened to $336 million, or $4.02 per share, from $15 million, or 18 cents per share, a year earlier.

Orbitz noted that its results included a $332 million impairment charge on goodwill and intangibles that was due in part to a sharp decline in the company's stock price during the quarter.

Quarterly revenue fell 14 percent to $188 million. Orbitz attributed $11 million of its revenue decline to fluctuations in foreign currency rates.

Analysts polled by Thomson Reuters, who generally exclude impairment charges and other one-time items, forecast a loss of 16 cents per share on revenue of $192.5 million.