Orbitz Worldwide was hit with a $332 million, noncash impairment charge in the first quarter, which made up the lion’s share of a $336 million loss.
The charge was triggered in part by the decline in Orbitz's stock price in the quarter, said CFO Marsha Williams.
During the quarter, Orbitz's stock price was at a high of $4.12 on Jan. 6 and fell to $1.29 by the end of March. The stock was trading at about $2.40 on Wednesday.
Orbitz's gross bookings fell 17%, to $2.38 billion, while net revenue dipped 14%, to $188 million. (Excluding currency fluctuations, net revenue was down 10%.)
Orbitz's loss would have been larger had the company not tightened its belt. Selling, general and administrative expenses decreased 14%, to $66 million, attributable to job cuts and reductions in outside contractor expense and other operating costs.
Also, the company spent $64 million on marketing, a 24% drop.