This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Orbitz Loses Out on American Airlines: What Wall Street's Saying

NEW YORK (TheStreet) - Orbitz Worldwide (OWW - Get Report) shares continued to decline on Wednesday following American Airlines (AAL - Get Report) decision on Tuesday to withdraw it fares from being listed on Orbitz's Web portal. American Airlines also intends to withdraw U.S. Airway fares on September 1, it said. Corporate clients who use Orbitz for business travel will not be affected.

"We have worked tirelessly with Orbitz to reach a deal with the economics that allow us to keep costs low and compete with low-cost carriers," said Scott Kirby, President of American Airlines, in a press release. "While our fares are no longer on Orbitz, there are a multitude of other options available for our customers, including brick and mortar agencies, online travel agencies, and our own websites."

Shares of Orbitz were lower in Wednesday trading, off 0.60% to $7.99.

Orbitz said in a statement that: "Our sites offer hundreds of airlines which are eager to capture the revenue American is choosing to forego and we will continue to show our customers a broad range of flight options to thousands of destinations in the U.S. and worldwide. Orbitz for Business is not impacted."

Read More: American Airlines -- Step Up and Face Regional Pilot Pay Issues, Says Lee Moak

Here's what Wall Street analysts are saying about Orbitz on Wednesday:

Naved Khan, Cantor Fitzgerald (Hold; $10 PT)

While American Airlines' decision to withdraw fares from Orbitz is no doubt a negative for the company and the stock, we estimate that the impact on both the top and bottom lines is likely to be limited. OWW's reliance on the Air segment for revenue has diminished since the last dispute with AAL (2010-2011), partially offsetting the increased exposure to AAL resulting from the acquisition of US Airways. We opt to remain on sidelines given a) lack of visibility into the timing/terms of a resolution with AAL and b) potential downside risk to FY:14 outlook from this issue.

Read More: 5 Most Beloved U.S. Airlines of All Time

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAL $42.61 0.00%
OWW $11.47 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs