Travelocity.com said yesterday that it expects earnings, before special items, to be within the range of its prior guidance of $0.08 to $0.10 per share for the quarter ending September 30, 2001.
“We are deeply saddened by the unspeakable tragedy that has touched our country,” said Terrell B. Jones, president and chief executive officer of Travelocity. “Our highest priority during these times is taking care of our customers—getting them home or to their desired destinations as conveniently as possible.” In response to last week`s tragic events, Travelocity`s dedicated customer care team is working closely with customers to help adjust their travel plans, including re-ticketing and refunds.
“Individually we all feel the effects of this tragedy; and as a business, the travel industry is feeling the immediate effects—as is every business in some way,” Jones added. “While we may not be able to control those effects in the near-term, our business model is sound. Since September 11, we have already seen bookings rise to more than 50% of prior levels compared to 30% to 40% immediately after the events, and we fully expect improved growth in travel spending in 2002.”
“Because of our stronger-than-expected profit performance in July and August, we are maintaining our earnings guidance for the third quarter, although revenues will be below our guidance,” commented Ramesh Punwani, chief financial officer of Travelocity. “While we believe it is too early to quantify the full impact of this tragedy on the fourth quarter, we are working diligently to manage expenses while continuing our emphasis on customer service. However, at this time we are reevaluating our prior financial guidance for the fourth quarter, and we expect to be able to provide revised guidance for that time period during our third quarter earnings call in October. With no debt and over $100 million in cash and marketable securities, our strong balance sheet supports the long-term financial viability of the Company.”