Moody's cuts Orbitz outlook to negative

Moody's Investors Service said it revised the outlook of Orbitz Worldwide, Inc. to negative from stable while affirming the corporate family rating at B2.

The agency said that the outlook revision is based on the deteriorating demand for travel as evidenced by double-digit declines in bookings during the most recent quarter by Travelport and airline capacity cuts.

While Orbitz increased net revenue and gross bookings by 9% and 4%, respectively, in the third quarter of 2008 fueled by effective marketing campaigns, the company has experienced a slowdown in all of their businesses beginning in October, which has prompted its decision to reduce U.S. headcount by 10%, the agency noted.

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