Orbitz: Fast-Growing Biz Unit Won't Make Money In '04

Orbitz officials today said Orbitz For Business will not earn a profit for 2004, although it is "coming in better than forecast, and the margins are doing better than we thought they would in the early cycle," said president, chairman and CEO Jeff Katz. Asked by analysts, the company did not disclose the percentage of Orbitz's $1.06 billion in first-quarter gross bookings generated by Orbitz For Business. "It's still a reasonably small percentage of our base, although it is growing faster" than the overall business, Katz said. Orbitz For Business claimed three Fortune 500 clients and five others in the Fortune 1000.

Orbitz Inc. today reported higher than expected overall first-quarter net earnings of $1.4 million on 42 percent higher net revenues. Orbitz said its expenses rose largely because of "increased sales support" for OFB. Overall gross travel bookings rose 38 percent.