Worldspan drops into red
Worldspan has blamed a $55.6 million refinancing charge for dropping the company into the red in 2005.
The GDS incurred a net loss of $0.7 million for the year but claimed that without the charge a profit of $54.9 million would have been achieved – a $13 million improvement over 2004.
A range of cost reductions including lower employee costs, communication and technology expenses, maintenance expenses and other expenses led to a 31% improvement in the 2005 operating income to $116.1 million.
Global transaction volumes remained unchanged at 2004 levels, while transaction volumes by online agencies grew by 5% but traditional agency volumes dropped by 5%.
The company reported a fourth quarter net loss of $3.2 million against a loss of $5.6 million in the same three months in 2004. Operating income was up to $10.5 million, a rise of $5.4 million. Global transaction volumes in the quarter were down by 4% year-on-year. Transactions by online agencies dropped by 4% and by traditional agencies by 5%.
Chairman, president and CEO Rakesh Gangwal said: “We are pleased with the continued growth of our operating income in the quarter, given a challenging revenue environment.
“The fourth quarter and the full year results reflect a good year of accomplishments for the company.”
Report by Phil Davies
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers reduced timetable to over 60 destinations
Hands In, UATP join forces for airline multi-card payments
AirlineRatings reveals world's safest airline rankings for 2026
Vietnam warns airlines of possible flight reductions amid jet fuel shortages
Fliggy opens AI-powered travel bookings and developer tools