Orbitz Crashing On News American Airlines Dumps Website
Orbitz Worldwide (NYSE: OWW) shares plunged sharply Tuesday after the largest U.S. airline said it will no longer make tickets available through the online travel company.
Citing costs, American Airlines (NASDAQ: AAL) said it withdrew its fares from consumer websites powered by Orbitz, effective immediately.
American also said it notified Orbitz it also will withdraw U.S. Airways fares on September 1. Corporate clients that use Orbitz for business won't 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," American's Scott Kirby said in a statement.
Orbitz traded recently at $8.03, down 4.74 percent.
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