American’s Saga With Expedia, Orbitz Continues (AMR, EXPE, OWW, PCLN, MMYT, TZOO)
The soap opera between AMR (AMR), parent of American, the third-largest U.S. airline, and select online travel reservations firms seemingly has no end as the airline is now saying it wants to work Expedia (EXPE) and Orbitz Worldwide (OWW) to resolve contract disputes that prompted American to disappear from the two Web sites.
Investors seem to be cheering the news as the Dotcom Travel Stocks Index is up by 3% today and is trying to erase a loss of 2% over the past month. American says it is in “active discussions” with Expedia and Orbitz about resolving the dispute, the Wall Street Journal reported. In December, American pulled its fares from Orbitz and Expedia responded first by showing American’s fares and schedules lower in its search and then pulling American fares altogether.
Expedia shares are up 4% and Orbitz is higher by 3% on the news. American said it remains comfortable with its booking levels despite not being on either site, the Journal reported. Press reports said earlier this week sales of American tickets account for just 2% of Expedia’s revenue.
After the tiff with Expedia, American directed customers to other travel sites such as kayak.com and Index member Priceline.com (PCLN). Shares of Priceline are surging 4% today. Elsewhere in the segment, recent Indian IPO MakeMyTrip (MMYT) is up 9%, while Travelzoo Inc (TZOO) has gained 6%.
Investors can track the Dotcom Travel Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
Here’s The Real Story Behind the Battle Between American Airlines and Expedia (Wall St. Cheat Sheet, 1/5/11)
Hipmunk: A Big Step Forward for Travel Search (Penny Stock DD, 1/28/11)
(EXPE) Expedia Earnings Preview: Will it Miss? (Stock Blog Hub, 4/24/13)
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