The stock price of Orbitz Worldwide, Inc. (NYSE:OWW) declined after American Airlines Group Inc (NASDAQ:AAL) announced its decision to stop listing its fares on the online travel company’s websites.
The share of Orbitz Worldwide, Inc. (NYSE:OWW) were trading $7.98 per share, down by more than 5% at the time of this writing around 3:01 in the afternoon in New York.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
Details of American Airlines’ decision
The American Airlines Group Inc (NASDAQ:AAL) decided to withdraw the fare of American Airlines from the consumer websites operated by Orbitz Worldwide, Inc. (NYSE:OWW) effective immediately.
In addition, American Airline Group (NASDAQ:AAL) will also remove the fares of US Airways on the websites of Orbitz Worlwide, Inc. (NYSE:OWW) on September 1, 2014. The group said corporate clients using Orbitz for Business to book their travel will not be affected by the change.
American Airlines Group (NASDAQ:AAL) made the decision after it failed to agree on a long-term contract with Orbitz Worldwide, Inc. (NYSE:OWW).
In a statement, Scott Kirby, the president of American Airlines said, “We have worked tirelessly with Orbitz to reach a deal with the economics that allow us to keep costs low and compete with low-cost carriers.”
Kirby emphasized that there are numerous options available for their customers including brick and mortar agencies, online travel agencies and their websites even if the fare of American Airlines are no longer listed on Orbitz Worldwide, Inc. (NYSE: OWW).
Orbitz Worldwide: Minimal disruptions for customers
American Airlines said the changes will have minimal disruption for its customers citing the reason that they can still purchase tickets through aa.com and usairways.com, reservation agents and other travel agencies.
The company said all tickets purchased through the websites of Orbitz Worldwide, Inc (NYSE:OWW) are valid for travel, but customers should make changes to their reservations through the reservation department of the airline.