Boston, MA 08/27/2014 (wallstreetpr) – A dispute between American Airlines Group Inc. (NASDAQ:AAL) and Orbitz Worldwide, Inc. (NYSE:OWW) over pricing has led to the former blocking the sale of its tickets on Orbitz site. The impact of American airlines move has been felt’ on both companies stock according to Associated Press.
Impact of Ticket Sales Withdrawal
Orbitz Worldwide, Inc. (NYSE:OWW)’s shares sunk in Tuesday trading session by 4.63% consequently closing the day at a low of $8.04. American Airlines Group Inc. (NASDAQ:AAL), on the other hand, closed the day at a low of $39.04 after going down by 0.84%
It is not the first time that the two companies have been entangled’ in a tussle related to pricing. Having handled approximately $6.5 billion worth of gross bookings since the start of the year, Orbitz Worldwide, Inc. (NYSE:OWW) awaits to see what impact the recent action by American Airlines will have on its net revenue for the second half of the year.
Orbitz Fees were high
American Airlines Group Inc. (NASDAQ:AAL) opted to withdraw its tickets from Orbitz Websites after a disagreement ensued over the amount of fees that the ticket provider was charging travelers as well as listing fees on its site. The airlines’ maintains the charges were too high compared to other low costs carriers considerably affecting the number of people who booked its flights. Orbitz Worldwide has confirmed American Airlines actions consequently stating it will seek to capture revenue from other airlines tickets.
American Airlines has not stated the amount of business it did with Orbitz Worldwide, Inc. (NYSE:OWW) in terms of bookings, but it could be big considering the constant complaints about the fees that the airline has always been complaining. American Airlines Group Inc. (NASDAQ:AAL) looks set to turn to the likes of Expedia and Travelocity that handle more volumes compared to Orbitz Worldwide.
The withdrawal of the tickets on Orbitz Worldwide, Inc. (NYSE:OWW) comes amidst the recovering airline industry that is headed’ into the busy the holiday season. American Airlines, Withdrawal will also affect Orbitz other websites such as Cheap Tickets and ebookers.com.
