Travelport sees profits slide following loss of United Airlines contract

Travelport sees profits slide following loss of United Airlines contract Travelport president Gordon Wilson presented the results earlier

Travelport has seen profits fall slightly in the second quarter of 2012, with the transaction processing giant recording operating income of $63 million for the period, down from $66 million last year.

In the three months ended June 30th, the company recorded net revenue of $506 million, down from the $530 million banked in the same period of 2011.

The loss of the Master Services Agreement with United Airlines contributed approximately $22 million to the decline in net revenue, Travelport said.

Excluding the impact of this loss, net revenue for the period would have been down by $2 million from the same period 2011.

At the same time, RevPas increased two per cent to $5.34, and average rate of agency commissions increased one per cent. 

Commenting on developments Travelport chief executive Gordon Wilson, said: “I am pleased to announce continued growth in Revenue per Segment driven by our enhanced content and product offering and demonstrating the strength in our underlying business model.

“Our first half performance is in line with management expectations despite the continued macroeconomic uncertainty which resulted in softer quarter two year-on-year segment volume as compared to quarter one across both the USA and Europe, the largest travel geographies.”