Travelport posted lower second-quarter revenue and earnings due in part to the loss of its IT services agreement with United Airlines and "continued macroeconomic uncertainty which resulted in softer Q2 year-on-year segment volume as compared to Q1 across both the United States and Europe," according to president and CEO Gordon Wilson.
Quarterly net revenue and operating income each declined 5% from a year earlier while adjusted earnings before interest, taxes, depreciation and amortization slid 12% to $120 million.
United's contract to use Travelport's Apollo reservations system ended in March, as the airline switched to the Shares system provided by Hewlett-Packard. According to Travelport, that "contributed approximately $22 million to the decline in net revenue and $16 million to the decline in each of operating income, EBITDA and adjusted EBITDA for Q2 2012 compared to 2011."
Excluding the impact of United's migration from Apollo, Travelport's second-quarter operating income and EBITDA increased by $13 million and $12 million, respectively.
Wilson also noted "continued growth in revenue per segment driven by our enhanced content and product offering."
Source: Business Travel News