Chicago-based online travel company Orbitz has exceeded Wall Street expectations in its Q1 financial report, with shares up 4.6% to $4.08. The company attributes the better-than-expected performance to a 33% rise in European hotel room booking in the first quarter. Orbitz has seen a rise in its European travel sector via its ebookers segment, regardless of the economic woes of the region.
Orbitz predicts a revenue growth of 4-8% for the fiscal year, while Thomas Reuters only projects a 4% rise. Orbitz banks on Q2 revenue sitting between $205-211 million, in line with the $208 million projected by analysts. Orbitz lost $6.5 million at 6 cents share last quarter, as compared to the Q1, 2011 loss of $10.9 million at 11 cents per share, when analysts had predicted a loss of 8 cents. Across the board, revenue was up by 2.6% to $189.8 million, indicative of the increase in European hotel bookings. Orbitz had predicted a revenue sitting between $187 million and $193 million, and all booking combined grossed $3.14 billion.
Orbitz is a leading worldwide travel company, founded in 1999 through investments from American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines and United Air Lines, and went online in 2001. In related news, Orbitz has recently launched a new Business Express Booking platform, which allows users to better coordinate their work travel.