Costs to promote the Travelzoo and Fly.com brands pushed Travelzoo to a net loss of $191,000 for the second quarter of 2009.

Travelzoo, an online publisher of travel deals, reported that second-quarter revenue increased 11.5%, to $24.3 million. But cost of revenue was up 137%, to $1.5 million.

"In the second quarter, we accelerated marketing for the Travelzoo and Fly.com brands," said Travelzoo CEO Holger Bartel. "We are taking advantage of attractive prices for media and are beginning to build-up our new product, Fly.com. This negatively impacted reported earnings per share by approximately $0.07 vs. the previous quarter."

Travelzoo launched Fly.com, a travel search engine, in February.

The company said the number of subscribers to its publications grew to 16.7 million during the second quarter, an increase of 1.3 million.

"This is the largest quarterly increase in subscribers in Travelzoo’s history," Bartel said.

Travelzoo has operations in North America, Europe and Asia/Pacific, but the company is profitable in North America only.

In the second quarter, Travelzoo posted a $4.5 million operating profit in North America but reported operating losses of $1.1 million and $1.8 million in Europe and Asia/Pacific, respectively.