NEW YORK – Orbitz Worldwide Inc., the online travel agent that runs Orbitz.com and Cheaptickets.com, is exploring a sale, people with knowledge of the matter said.
The company is working with a financial adviser as it reaches out to potential buyers, said the people, asking not to be identified discussing private information. Chicago-based Orbitz has drawn interest from private-equity funds and other Internet companies, the people said, without identifying potential buyers.
Orbitz is seeking a buyer with a pickup in U.S. travel expected to drive its revenue to a record $932 million this year, analyst estimates compiled by Bloomberg show. U.S. airlines are flying at record capacity in the United States as fuel – their largest expense – is at the lowest level in six years.
The shares jumped as much as 15 percent in New York and were trading at $10.23 as of 1:49 p.m., giving the company a market value of $1.1 billion.
The company has had private-equity owners in the past. It was part of Travelport Ltd., which Blackstone Group acquired in 2006 for about $4.3 billion. Orbitz went public in July 2007.
A representative for Orbitz declined to comment on the company’s plans. Tnooz.com reported earlier this month that Orbitz was working on a major transaction, saying the scale and type of a deal was unclear.
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