Orbitz Worldwide Inc, an online travel agency, reported a higher-than-expected quarterly profit on Thursday as it booked more hotel stays and vacation packages.
The company, which operates its namesake and CheapTickets brand in the United States and ebookers in Europe, has been boosting revenue from hotels, which tend to be more profitable than airline tickets.
Earnings were $5.3 million, or 5 cents a share, in the fourth quarter, compared with a loss of $314.6 million, or $2.96 a share, a year earlier.
Analysts had expected profit to break even, according to Thomson Reuters I/B/E/S.
Quarterly revenue rose 4 percent to $197.4 million, compared with about $191 million expected by analysts.
Revenue from airline tickets fell 11 percent in the quarter while revenue from hotels and vacation packages rose 18 percent and 16 percent, respectively.
Orbitz forecast revenue between $202 million and $207 million for the current first quarter, compared with $207.3 million expected by analysts. For the full year, it said revenue would grow in the low- to mid-single-digit percentage range.