Higher efficiency aids Travelport's GDS business

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The number of agency segments that Travelport processed through Apollo, Galileo and Worldspan in the second quarter declined 15%, but the company said earnings from its GDS business rose 4%, to $167 million, because of higher yields.

Regarding its GDS business, Travelport CFO Mike Resco indicated that the company achieved more than $165 million in "synergy savings" related to its August 2007 acquisition of Worldspan.

For the company as a whole (including its GDS business, wholesale division and 48% stake in Orbitz Worldwide), Travelport reported second-quarter net income of $40 million, a 32.2% drop from a year earlier.

Revenue was $592 million, a 15.8% decline.

Commenting on the second-quarter numbers, Travelport CEO Jeff Clarke stated: "Low travel volumes continue to weigh negatively upon our earnings as a result of the global recessionary environment. Despite the difficult environment, Travelport continues to aggressively invest in the next generation of our products and expansion into new markets."

Travelport reported that it notched $5 million in income, compared with a $3 million loss a year earlier, from its investment in Orbitz Worldwide.

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