Exhibit 99.1

Orbitz Worldwide, Inc. Reports Fourth Quarter and Full Year 2010 Results

Chicago, February 16, 2011 — Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the fourth quarter and year ended December 31, 2010.

“2010 was a successful year in which we delivered $11.4 billion in gross bookings, 6% growth in Adjusted EBITDA, and acceleration in room night growth to 8%. We were particularly pleased with the performance of our ebookers business in Europe and our U.S. distribution business, both of which grew room nights by 50% or more,” said Barney Harford, CEO of Orbitz Worldwide. “In 2011 we are focused on strategic initiatives around hotel distribution including enhancing the hotel search and booking experience; expanding our mobile offerings; augmenting our ability to source a broad and deep range of highly competitive inventory from suppliers around the world; and completing the migration of our consumer businesses to the global platform.”

		Three Months Ended												Years Ended
		December 31,												December 31,
(in thousands, except per share data)		2010				2009				Change				2010				2009				Change
Gross bookings (a)		$	2,550,749			$	2,456,755				4	%		$	11,370,177			$	9,942,444				14	%
Net revenue		$	182,364			$	174,693				4	%		$	757,487			$	737,648				3	%
Net revenue margin (b)			7.1	%			7.1	%		0 ppt					6.7	%			7.4	%		-0.7 ppt
Net loss		$	(78,041	)		$	(18,055	)				**		$	(58,237	)		$	(336,955	)			-83	%
Basic and Diluted EPS		$	(0.76	)		$	(0.21	)				**		$	(0.58	)		$	(4.01	)			-86	%
Operating cash flow		$	(25,040	)		$	1,732					**		$	98,609			$	105,074				-6	%
Capital spending		$	12,164			$	12,100				1	%		$	40,010			$	42,909				-7	%
EBITDA (c)		$	(51,231	)		$	24,466					**		$	61,105			$	(201,244	)				**
Impairments		$	79,546				—					**		$	81,250			$	331,527				-75	%
Other adjustments		$	(1,967	)		$	3,338					**		$	10,099			$	14,040				-28	%
Adjusted EBITDA (c)		$	26,348			$	27,804				-5	%		$	152,454			$	144,323				6	%
Transaction growth (a)(d)			1	%			20	%		-19 ppt					7	%			4	%		3 ppt
Hotel room night growth (e)			4	%			13	%		-9 ppt					8	%			4	%		4 ppt

Fourth Quarter 2010 Financial Highlights

The company reported a net loss of $78.0 million or $(0.76) per diluted share for the fourth quarter 2010 compared with a net loss of $18.1 million or $(0.21) per diluted share for the fourth quarter 2009. The net loss for the fourth quarter 2010 was due primarily to non-cash goodwill and intangible asset impairment charges. Adjusted EBITDA was $26.3 million for the fourth quarter 2010, a decrease of 5 percent year over year.

Gross Bookings and Net Revenue

Global gross bookings increased 4 percent year over year on both a reported and constant currency basis. This increase was due primarily to higher volume for the company’s ebookers and Orbitz for Business brands and higher air fares and average daily rates (“ADRs”) for hotel rooms. Lower air and vacation package volume for the company’s domestic leisure brands and lower hotel volume for HotelClub partially offset this increase.

Net revenue was $182.4 million for the fourth quarter 2010, an increase of 4 percent year over year on both a reported and constant currency basis. Net revenue was up primarily due to an increase in standalone hotel volume and ADRs, higher air volume for ebookers and a non-cash reduction in the unfavorable contract liability due to the termination of the Charter Associate Agreement with American Airlines effective December 2010. The reduction in this liability was recorded as an increase to net revenue. These increases were partially offset by lower advertising revenue and a decline in revenue from the company’s airline hosting business.

		Three Months Ended												Years Ended
		December 31,												December 31,
(in thousands)		2010				2009				Change				2010				2009				Change
Gross Bookings
Air		$	1,906,822			$	1,862,485				2	%		$	8,437,063			$	7,254,952				16	%
Non-air			643,927				594,270				8	%			2,933,114				2,687,492				9	%
Total Gross Bookings		$	2,550,749			$	2,456,755				4	%		$	11,370,177			$	9,942,444				14	%
Domestic		$	2,114,917			$	2,083,570				2	%		$	9,563,755			$	8,503,179				12	%
International			435,832				373,185				17	%			1,806,422				1,439,265				26	%
Total Gross Bookings (a)		$	2,550,749			$	2,456,755				4	%		$	11,370,177			$	9,942,444				14	%
Net Revenue
Air		$	66,880			$	59,474				12	%		$	274,568			$	269,643				2	%
Hotel			51,711				45,722				13	%			203,821				183,658				11	%
Vacation Package			25,972				26,651				-3	%			115,161				117,026				-2	%
Advertising and Media			12,526				16,709				-25	%			49,353				59,534				-17	%
Other			25,275				26,137				-3	%			114,584				107,787				6	%
Total Net Revenue		$	182,364			$	174,693				4	%		$	757,487			$	737,648				3	%
Domestic		$	135,707			$	134,875				1	%		$	579,585			$	584,951				-1	%
International			46,657				39,818				17	%			177,902				152,697				17	%
Total Net Revenue		$	182,364			$	174,693				4	%		$	757,487			$	737,648				3	%

	§		Air net revenue was $66.9 million in the fourth quarter 2010, up 12 percent (13 percent on a constant currency basis) year over year. Air net revenue for the company’s domestic leisure brands was up 7 percent year over year primarily due to a non-cash reduction in the unfavorable contract liability due to the termination of the Charter Associate Agreement between the company and American Airlines effective December 2010, partially offset by a decline in air transactions. ebookers air net revenue increased 31 percent (34 percent on a constant currency basis) year over year due primarily to higher air transactions and higher average net revenue per airline ticket.
	§		Hotel net revenue was $51.7 million in the fourth quarter 2010, up 13 percent (11 percent on a constant currency basis) year over year. Hotel net revenue for the company’s domestic leisure brands increased due primarily to both higher hotel transactions and higher average net revenue per transaction. The higher average net revenue per transaction was driven by an increase in ADRs for hotel rooms, fewer promotional coupons issued by the company and an increase in rebates from a payment vendor, partially offset by a lower average length of stay. ebookers had another quarter of strong growth in standalone hotel transactions which also contributed to the increase in hotel net revenue. Lower hotel volume for HotelClub partially offset these increases.
	§		Vacation package net revenue decreased 3 percent in the quarter to $26.0 million. Lower volume and lower average net revenue per transaction for the company’s domestic leisure brands drove the decline. This decline was partially offset by an increase in ebookers vacation package net revenue due to higher volume, offset in part by lower average net revenue per transaction.
	§		Advertising and media revenue decreased 25 percent year over year to $12.5 million, primarily due to a $4.0 million decline in revenue from membership discount programs. Effective March 31, 2010, the company ended the membership discount program previously offered on its domestic leisure websites.
	§		Other net revenue, which is primarily comprised of car rental, cruise, destination services, travel insurance and airline hosting revenue, decreased 3 percent year over year. This decrease was due primarily to a decline in airline hosting revenue due to the termination of one of the company’s hosting agreements in the first quarter 2010 and, to a lesser extent, a decline in destination services revenue for the company’s domestic leisure brands. This decrease was partially offset by higher net revenue from car rentals due primarily to higher car rental transactions for the company’s domestic leisure brands and Orbitz for Business.

In order to provide a more comparable view of the company’s operating performance across periods, Appendix A to this press release adjusts gross bookings and net revenue for currency impacts. The company has also included a schedule of trended operating metrics in Appendix B to this press release.

Operating Expenses

Cost of revenue

Cost of revenue is primarily comprised of customer service costs, credit card processing fees and other costs, including customer refunds and charge-backs, commissions to private label partners (“affiliate commissions”) and connectivity and other processing costs.

		Three Months Ended
		December 31,								$				%
		2010				2009				Change				Change
		(in thousands)
Customer service costs		$	13,633			$	14,483			$	(850	)			-6	%
Credit card processing fees			9,926				9,121				805				9	%
Other			15,643				11,564				4,079				35	%
Total cost of revenue		$	39,202			$	35,168			$	4,034				11	%
% of net revenue			21.5	%			20.1	%

Cost of revenue increased to 21.5 percent of net revenue in the fourth quarter 2010 due to higher credit card processing fees and higher customer refund and fraud costs, both of which were driven by stronger merchant gross bookings, and higher affiliate commissions due to the expansion of the company’s private label channel. Lower customer service staffing levels partially offset this increase.

Selling, general and administrative (SG&A) expense

SG&A expense is comprised of wages and benefits, contract labor costs, network communications, systems maintenance and equipment costs and other expenses.

		Three Months Ended
		December 31,								$				%
		2010				2009				Change				Change
						(in thousands)
Wages and benefits		$	35,922			$	40,923			$	(5,001	)			-12	%
Contract labor			6,064				4,693				1,371				29	%
Network communications, systems maintenance and equipment			6,286				6,324				(38	)			-1	%
Other			14,577				14,594				(17	)			0	%
Total SG&A		$	62,849			$	66,534			$	(3,685	)			-6	%
% of net revenue			34.5	%			38.1	%

SG&A expense for the fourth quarter 2010 declined 6 percent year over year primarily due to lower employee incentive compensation, severance and stock based compensation expense and a decline in foreign currency losses and hedging costs. Higher travel and contract labor costs partially offset this decrease.

Marketing expense

The company’s marketing expense is primarily comprised of online marketing costs, such as search and banner advertising, and offline marketing costs, such as television, radio and print

advertising. Marketing expense increased 7 percent year over year in the fourth quarter 2010 to $52.0 million. This increase was due primarily to higher online marketing spending driven by an increase in the cost per transaction for HotelClub and higher transaction volume for ebookers. Offline marketing spending was relatively flat year over year. Marketing expense as a percentage of net revenue increased to 29 percent for the fourth quarter 2010, up from 28 percent in the fourth quarter 2009.

Interest Expense

Orbitz Worldwide incurred net interest expense of $10.6 million in the fourth quarter 2010, a decline of 25 percent year over year. This year over year decline was primarily due to lower outstanding borrowings and a lower effective interest rate on the company’s term loan. The company’s outstanding borrowings are expected to decline further in 2011 as a result of an approximate $19.8 million excess cash flow payment the company is required to make on its term loan in March 2011. At December 31, 2010, $300.0 million of the $492.0 million outstanding on the company’s term loan had fixed interest rates through interest rate swaps. The weighted-average effective interest rate on the term loan was 4.28 percent for the fourth quarter 2010, down from 5.98 percent for the fourth quarter 2009.

Cash Flow

Orbitz Worldwide reported operating cash flow of $98.6 million for the year ended December 31, 2010, a decline of 6 percent year over year. The decline in operating cash flow was primarily driven by lower booking fee revenue, changes in the timing of payments received from global distribution systems, the payment of employee incentive compensation in the first quarter 2010 and changes in other working capital accounts. These decreases were partially offset by higher merchant gross bookings, lower interest payments and the timing of payments related to the company’s marketing spending.

At December 31, 2010, cash and cash equivalents were $97.2 million compared with cash and cash equivalents of $46.4 million at December 31, 2009 (net of $42.2 million of borrowings under the revolving credit facility). The year over year increase in cash was driven in part by the $50.0 million of cash proceeds received from the additional equity investment made by Travelport in January 2010.

Operational Highlights

•		In November 2010, Roger Liew was named Chief Technology Officer. Previously, Roger was Vice President of Technology at Orbitz Worldwide and Group Manager of the Intelligent Marketplace Group.
•		In November 2010, Orbitz launched the first native applications for the iPhone® and Android™ mobile devices that allow consumers to shop and book air travel, hotel and car rental options. The company also launched a next generation mobile website (m.orbitz.com) that enables consumers to access Orbitz from any Web-enabled mobile phone. The Orbitz applications for iPhone® and Android™, as well as the next generation of the Orbitz mobile website, now allow travelers to make reservations quickly, access itineraries anytime, anywhere and check flight status, gate and baggage claim details.
•		During the fourth quarter, Orbitz Worldwide signed a two-year global hotel agreement with Wyndham Worldwide, including 6,200 participating hotels. Orbitz Worldwide also signed agreements with a number of regional hotel partners, including Southern Sun, Doyle Collection, Vacances Bleues, Simply Hotels, Pestana Hotels & Resorts and Austria Trend Hotels. In addition, Orbitz signed an agreement with Accor to offer their Ibis brand in select countries.

•		In December 2010, Orbitz launched its annual Winter Hotel Sale, offering travelers up to 50 percent off of thousands of hotels worldwide.
•		During the fourth quarter, Orbitz Worldwide signed global contracts with destination marketing organizations, including Tourism Australia, Puerto Rico Tourism Company, Hawaii Tourism Authority and Canadian Tourism Commission. Orbitz Worldwide now has partner marketing agreements with nearly 200 destination marketing organizations.
•		In December 2010, the company launched a customized private label solution for Ultimate Fighting Championship, enabling their customers to book hotels, air travel, car rentals and vacation packages using the Orbitz Worldwide global network of suppliers.
•		In December 2010, ebookers launched its mobile website (m.ebookers.com), which allows consumers to shop and book air travel, hotel and car rental options directly from any web-enabled mobile device — in all languages and currencies supported by ebookers. The ebookers mobile website is built upon the global technology platform and allows customers to access their itineraries anytime, anywhere and enables access to rich content for hotels such as detailed descriptions, reviews, maps and photos. ebookers was the first online travel agent in Europe to offer a fully bookable mobile service for multiple products.
•		In January 2011, ebookers launched a new advertising campaign across all of its 12 country websites which reinforces its “Book easier, travel happier” value proposition. ebookers also sponsored a prime time television program beginning in January 2011 to further drive brand awareness for consumer audiences with a passion for travel.
•		In January 2011, Orbitz launched its Winter Savecations Hotel Sale, offering travelers 30 percent or more off of thousands of hotels worldwide.
•		Russ Hammer was appointed Chief Financial Officer effective January 1, 2011. Previously, Russ was Chief Financial Officer at Crocs, Inc.
•		In February 2011, the company signed a long-term renewal agreement with ITA Software, Inc. (“ITA”), a leading provider of innovative solutions to the travel industry. The agreement includes terms for the company’s use of ITA’s QPX software for the Orbitz.com and CheapTickets.com websites through December 31, 2015.

Outlook

For the first quarter 2011, the company expects:

	•		Net revenue in the range of $177 million to $184 million; and
	•		Adjusted EBITDA between $16 million and $21 million.

The midpoint of the company’s Adjusted EBITDA guidance for the first quarter 2011, excluding $6 million of previously disclosed non-recurring items for first quarter 2010, represents a 25 percent decrease from the first quarter 2010.

This outlook assumes relatively stable foreign exchange rates.

Quarterly Conference Call

Orbitz Worldwide will host a conference call to discuss its fourth quarter and full year 2010 results at 10:00 a.m. EST (9:00 a.m. CST) on Wednesday, February 16, 2011. A live webcast of the conference call can be accessed through the Orbitz Worldwide Investor Relations website at www.orbitz-ir.com. An archive of the webcast and a transcript will also be available on the website for a period of at least 30 days.

About Orbitz Worldwide

Orbitz Worldwide is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products. Orbitz Worldwide owns a portfolio of consumer brands that includes Orbitz (www.orbitz.com), CheapTickets (www.cheaptickets.com), ebookers (www.ebookers.com), HotelClub (www.hotelclub.com), RatesToGo (www.ratestogo.com) and the Away Network (www.away.com). Also within the Orbitz Worldwide family, Orbitz Worldwide Distribution (corp.orbitz.com/partnerships/distribution) delivers private label travel solutions to a broad range of partners including many of the world’s largest airlines, and Orbitz for Business (www.orbitzforbusiness.com) delivers managed corporate travel solutions for corporations. For more information on partnership opportunities with Orbitz Worldwide, visit corp.orbitz.com.

Orbitz Worldwide uses its Investor Relations website to make information available to its investors and the public at www.orbitz-ir.com. You can sign up to receive email alerts whenever the company posts new information to the website.

Forward-Looking Statements

This press release and its attachments may contain forward-looking statements that involve risks, uncertainties and other factors concerning, among other things, the company’s expected financial performance and its strategic operational plans. The results presented are unaudited. The company’s actual results could differ materially from the results expressed or implied by such forward-looking statements and reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release and its attachments include, but are not limited to, the economic recession and general state of the financial markets; competition in the travel industry; factors affecting the level of travel activity, particularly air travel volume; the termination of any major supplier’s participation on the company’s websites; maintenance and protection of the company’s information technology and intellectual property; the outcome of pending litigation; the company’s level of indebtedness; risks associated with doing business in multiple currencies; trends in the travel industry; and general economic and business conditions. More information regarding these and other risks, uncertainties and factors is contained in the section entitled “Risk Factors” in the company’s filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the company’s Investor Relations website at www.orbitz-ir.com. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of February 16, 2011, and Orbitz Worldwide undertakes no obligation to publicly revise any forward-looking statement.

About Non-GAAP Financial Measures

This press release and its attachments include certain non-GAAP financial measures as defined by the SEC. These measures may be different from non-GAAP measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP). Further information regarding the non-GAAP financial measures included in this press release is contained in Appendix A attached to this press release.

Media Contact: Brian Hoyt +1 312 894 6890 brian.hoyt@orbitz.com		Investor Contact: Melissa Hayes +1 312 260 2428 melissa.hayes@orbitz.com

##

Orbitz Worldwide, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)

		Three Months Ended December 31,								Years Ended December 31,
		2010				2009				2010				2009
Net revenue		$	182,364			$	174,693			$	757,487			$	737,648
Cost and expenses
Cost of revenue			39,202				35,168				153,516				138,376
Selling, general and administrative			62,849				66,534				244,114				256,659
Marketing			51,998				48,528				217,520				214,445
Depreciation and amortization			16,442				18,160				72,891				69,156
Impairment of goodwill and intangible assets			70,151				—				70,151				331,527
Impairment of property and equipment and other assets			9,395				—				11,099				—
Total operating expenses			250,037				168,390				769,291				1,010,163
Operating (loss) income			(67,673	)			6,303				(11,804	)			(272,515	)
Other (expense) income
Net interest expense			(10,636	)			(14,140	)			(44,070	)			(57,322	)
Other income			—				3				18				2,115
Total other expense			(10,636	)			(14,137	)			(44,052	)			(55,207	)
Loss before income taxes			(78,309	)			(7,834	)			(55,856	)			(327,722	)
(Benefit) provision for income taxes			(268	)			10,221				2,381				9,233
Net loss		$	(78,041	)		$	(18,055	)		$	(58,237	)		$	(336,955	)
Net loss per share—basic and diluted:
Net loss per share		$	(0.76	)		$	(0.21	)		$	(0.58	)		$	(4.01	)
Weighted-average shares outstanding			103,255,223				84,437,135				101,269,274				84,073,593

Orbitz Worldwide, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)

		December 31, 2010				December 31, 2009
Assets
Current assets:
Cash and cash equivalents		$	97,222			$	88,656
Accounts receivable (net of allowance for doubtful accounts of $956 and $935, respectively)			54,702				54,708
Prepaid expenses			17,425				17,399
Due from Travelport, net			15,449				3,188
Other current assets			3,627				5,702
Total current assets			188,425				169,653
Property and equipment, net			158,063				180,962
Goodwill			677,964				713,123
Trademarks and trade names			128,431				155,090
Other intangible assets, net			7,649				18,562
Deferred income taxes, non-current			8,147				9,954
Other non-current assets			48,024				46,898
Total Assets		$	1,216,703			$	1,294,242
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	26,491			$	30,279
Accrued merchant payable			233,850				219,073
Accrued expenses			105,798				112,771
Deferred income			30,850				30,924
Term loan, current			19,808				20,994
Other current liabilities			5,994				5,162
Total current liabilities			422,791				419,203
Term loan, non-current			472,213				555,582
Line of credit			—				42,221
Tax sharing liability			101,545				108,736
Unfavorable contracts			8,068				9,901
Other non-current liabilities			22,233				28,096
Total Liabilities			1,026,850				1,163,739
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding			—				—
Common stock, $0.01 par value, 140,000,000 shares authorized, 102,342,860 and 83,831,561 shares issued and outstanding, respectively			1,023				838
Treasury stock, at cost, 25,237 and 24,521 shares held, respectively			(52	)			(48	)
Additional paid in capital			1,029,215				921,425
Accumulated deficit			(843,609	)			(785,372	)
Accumulated other comprehensive income (loss) (net of accumulated tax benefit of $2,558 and $2,558, respectively)			3,276				(6,340	)
Total Shareholders’ Equity			189,853				130,503
Total Liabilities and Shareholders’ Equity		$	1,216,703			$	1,294,242

Orbitz Worldwide, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

		Years Ended December 31,
		2010				2009
Operating activities:
Net loss		$	(58,237	)		$	(336,955	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net gain on extinguishment of debt			(57	)			(2,172	)
Depreciation and amortization			72,891				69,156
Impairment of goodwill and intangible assets			70,151				331,527
Impairment of property and equipment and other assets			11,099				—
Amortization of unfavorable contract liability			(9,226	)			(3,300	)
Non-cash net interest expense			15,797				15,451
Deferred income taxes			1,494				6,920
Stock compensation			12,535				14,099
Provision for bad debts			34				566
Changes in assets and liabilities:
Accounts receivable			(256	)			4,508
Deferred income			(831	)			8,575
Due to/from Travelport, net			(12,126	)			6,344
Accrued merchant payable			14,593				3,582
Accounts payable, accrued expenses and other current liabilities			(11,636	)			(10,848	)
Other			(7,616	)			(2,379	)
Net cash provided by operating activities			98,609				105,074
Investing activities:
Property and equipment additions			(40,010	)			(42,909	)
Changes in restricted cash			(132	)			(682	)
Net cash used in investing activities			(40,142	)			(43,591	)
Financing activities:
Proceeds from issuance of common stock, net of issuance costs			48,930				—
Payment of fees to repurchase a portion of the term loan			(248	)			—
Payments on the term loan			(20,994	)			(5,924	)
Payments to extinguish debt			(13,488	)			(7,774	)
Payments to satisfy employee tax withholding obligations upon vesting of equity-based awards			(2,984	)			(422	)
Proceeds from exercise of employee stock options			72				422
Payments on tax sharing liability			(18,885	)			(11,075	)
Proceeds from line of credit			—				99,457
Payments on line of credit			(42,221	)			(81,052	)
Proceeds from note payable			800				—
Payments on note payable			(57	)			—
Net cash used in financing activities			(49,075	)			(6,368	)
Effects of changes in exchange rates on cash and cash equivalents			(826	)			2,348
Net increase in cash and cash equivalents			8,566				57,463
Cash and cash equivalents at beginning of period			88,656				31,193
Cash and cash equivalents at end of period		$	97,222			$	88,656
Supplemental disclosure of cash flow information:
Income tax payments, net		$	1,120			$	1,151
Cash interest payments, net of capitalized interest of $17 and $82, respectively		$	27,935			$	42,075
Non-cash investing activity:
Capital expenditures incurred not yet paid		$	2,948			$	307
Non-cash financing activity:
Repayment of term loan in connection with debt-equity exchange		$	49,564				—

Appendix A: Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

EBITDA is a performance measure used by management that is defined as net income or net loss plus: net interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted for certain non-cash and unusual or non-recurring items as described below. Orbitz Worldwide uses and believes investors and other external users of the company’s financial statements benefit from the presentation of EBITDA and Adjusted EBITDA in evaluating its operating performance because:

	•		These measures provide greater insight into management decision making at Orbitz Worldwide as they are among the primary metrics by which management evaluates the operating performance of the company’s business. Management believes that when viewed with GAAP results and the accompanying reconciliation, EBITDA and Adjusted EBITDA provide additional information that is useful for management and other external users to gain an understanding of the factors and trends affecting the ongoing cash earnings capability of the company’s business, from which capital investments are made and debt is serviced. These supplemental measures are used by management and the board of directors to evaluate the company’s actual results against management’s expectations. The compensation of management and other employees within the company is also tied to the company’s actual performance, as measured by Adjusted EBITDA relative to performance targets established by the company’s board of directors and its compensation committee.
	•		EBITDA measures performance apart from items such as interest expense, income taxes and depreciation and amortization. Management believes that the exclusion of interest expense is necessary to evaluate the cash earnings capability of the business. The company generally only funds working capital requirements with borrowed funds (specifically, funds borrowed under its revolving credit facility), if at all, in the fourth quarter of the year when its cash balances are typically the lowest. As a result, nearly all of the company’s interest expense is not incurred to fund its operating activities. In addition, excluding interest expense from the company’s non-GAAP measures is consistent with the company’s intent to disclose the ongoing cash earnings capability of the business, from which capital investments are made and debt is serviced. Management believes that the exclusion of non-cash depreciation and amortization is also necessary to evaluate the cash earnings capability of the business. Management believes that the review of its non-GAAP measures in conjunction with other GAAP metrics, such as capital expenditures, is more useful in understanding the company’s business than the inclusion of depreciation and amortization expense in the non-GAAP measures used by management, since depreciation and amortization expense has historically fluctuated as a result of purchase accounting and this expense involves management judgment (e.g. estimated useful lives).

•

Adjusted EBITDA corresponds more closely to the ongoing cash earnings capability of the company’s business, by excluding the items described above, as well as certain other non-cash items, such as goodwill and intangible asset impairment charges and stock-based compensation, and other unusual and non-recurring items, such as restructuring charges and litigation settlements. Adjusted EBITDA does not exclude certain non-cash items, such as accruals of revenue and expense, because these items represent timing differences and management believes that by including these items, it is providing a better view of the cash earnings capability of the business.

EBITDA and Adjusted EBITDA, as presented for the three months and years ended December 31, 2010 and December 31, 2009, are not defined under GAAP and do not purport to be an alternative to net income or net loss as a measure of operating performance. EBITDA and Adjusted EBITDA have certain limitations in that they do not take into account the impact of certain expenses to the company’s income statement, such as stock-based compensation, goodwill and intangible asset impairment charges and certain one-time items, if applicable. Because not all companies use identical calculations, this presentation of EBITDA and Adjusted EBITDA may not be comparable to other similarly-titled measures used by other companies.

The following table provides a reconciliation of net loss to EBITDA:

		Three Months Ended								Years Ended
		December 31,								December 31,
		2010				2009				2010				2009
		(in thousands)
Net loss		$	(78,041	)		$	(18,055	)		$	(58,237	)		$	(336,955	)
Net interest expense			10,636				14,140				44,070				57,322
(Benefit) provision for income taxes			(268	)			10,221				2,381				9,233
Depreciation and amortization			16,442				18,160				72,891				69,156
EBITDA		$	(51,231	)		$	24,466			$	61,105			$	(201,244	)

EBITDA was adjusted by the items listed and described in more detail below. The following table provides a reconciliation of EBITDA to Adjusted EBITDA.

		Three Months Ended								Years Ended
		December 31,								December 31,
		2010				2009				2010				2009
		(in thousands)
EBITDA		$	(51,231	)		$	24,466			$	61,105			$	(201,244	)
Impairment of goodwill and intangible assets (a)			70,151				—				70,151				331,527
Impairment of property and equipment and other assets (b)			9,395				—				11,099				—
Acceleration of amortization of net unfavorable contract liability (c)			(5,342	)			—				(5,342	)			—
Stock-based compensation expense (d)			1,875				3,318				12,862				15,226
Net gain on extinguishment of debt (e)			—				—				(57	)			(2,172	)
Professional services fees (f)			—				—				—				570
Restructuring (g)			—				20				(152	)			521
Litigation settlements (h)			1,500				—				2,788				—
Adjustment to tax sharing liability (i)			—				—				—				(105	)
Adjusted EBITDA		$	26,348			$	27,804			$	152,454			$	144,323

Gross Bookings and Net Revenue, at Constant Currency

The company’s reporting currency is the U.S. Dollar. As a result, reported financial results are impacted by the strength or weakness of the U.S. Dollar relative to the currencies of the international markets in which the company operates, particularly the Pound Sterling, Euro and Australian Dollar. Management evaluates the company’s operating performance with and without the impact of changes in foreign exchange rates because it believes excluding the impact of foreign exchange rates provides a more comparable view of the company’s operating performance across periods. Management believes that when viewed with GAAP results and the accompanying reconciliation, management and other external users are better able to gain an understanding of the factors and trends affecting operating performance. The following table adjusts gross bookings and net revenue for foreign currency impacts across the relevant periods:

		Three Months Ended
		December 31, 2010
										Total
(in thousands)		Domestic			International					Orbitz Worldwide
Gross Bookings
Q4, 2010 Reported Gross Bookings		$	2,114,917			$	435,832			$	2,550,749
Q4, 2009 Reported Gross Bookings		$	2,083,570			$	373,185			$	2,456,755
Impact of Foreign Exchange Rates			—				(5,127	)			(5,127	)
Q4, 2009 Gross Bookings at Constant Currency		$	2,083,570			$	368,058			$	2,451,628
Reported Gross Bookings Growth			2	%			17	%			4	%
Gross Bookings Growth at Constant Currency			2	%			18	%			4	%
Net Revenue
Q4, 2010 Reported Net Revenue		$	135,707			$	46,657			$	182,364
Q4, 2009 Reported Net Revenue		$	134,875			$	39,818			$	174,693
Impact of Foreign Exchange Rates			—				533				533
Q4, 2009 Net Revenue at Constant Currency		$	134,875			$	40,351			$	175,226
Reported Net Revenue Growth			1	%			17	%			4	%
Net Revenue Growth at Constant Currency			1	%			16	%			4	%

		Year Ended
		December 31, 2010
										Total
(in thousands)		Domestic			International					Orbitz Worldwide
Gross Bookings
2010 Reported Gross Bookings		$	9,563,755			$	1,806,422			$	11,370,177
2009 Reported Gross Bookings		$	8,503,179			$	1,439,265			$	9,942,444
Impact of Foreign Exchange Rates			—				27,606				27,606
2009 Gross Bookings at Constant Currency		$	8,503,179			$	1,466,871			$	9,970,050
Reported Gross Bookings Growth			12	%			26	%			14	%
Gross Bookings Growth at Constant Currency			12	%			23	%			14	%
Net Revenue
2010 Reported Net Revenue		$	579,585			$	177,902			$	757,487
2009 Reported Net Revenue		$	584,951			$	152,697			$	737,648
Impact of Foreign Exchange Rates			—				6,389				6,389
2009 Net Revenue at Constant Currency		$	584,951			$	159,086			$	744,037
Reported Net Revenue Growth			-1	%			17	%			3	%
Net Revenue Growth at Constant Currency			-1	%			12	%			2	%

Appendix B: Trended Operating Metrics

		2009																	2010
		Q1				Q2				Q3				Q4					Q1				Q2				Q3				Q4
Gross Bookings (in thousands)
Domestic
Air		$	1,421,051			$	1,714,962			$	1,595,580			$	1,627,674				$	1,816,137			$	2,073,924			$	1,768,632			$	1,638,738
Non-air			594,028				553,532				540,456				455,896					621,260				584,194				584,691				476,179
Total			2,015,079				2,268,494				2,136,036				2,083,570					2,437,397				2,658,118				2,353,323				2,114,917
International
Air			226,132				222,218				212,524				234,811					316,107				274,593				280,848				268,084
Non-air			124,161				129,252				151,793				138,374					176,739				144,928				177,375				167,748
Total			350,293				351,470				364,317				373,185					492,846				419,521				458,223				435,832
Orbitz Worldwide
Air			1,647,183				1,937,180				1,808,104				1,862,485					2,132,244				2,348,517				2,049,480				1,906,822
Non-air			718,189				682,784				692,249				594,270					797,999				729,122				762,066				643,927
Total		$	2,365,372			$	2,619,964			$	2,500,353			$	2,456,755				$	2,930,243			$	3,077,639			$	2,811,546			$	2,550,749
Year over Year Gross Bookings Growth
Domestic			-13	%			-9	%			-5	%			15	%				21	%			17	%			10	%			2	%
International			-34	%			-29	%			-16	%			35	%				41	%			19	%			26	%			17	%
Orbitz Worldwide			-17	%			-13	%			-7	%			18	%				24	%			17	%			12	%			4	%
At Constant Currency
Domestic			-13	%			-9	%			-5	%			15	%				21	%			17	%			10	%			2	%
International			-18	%			-15	%			-9	%			16	%				25	%			20	%			29	%			18	%
Orbitz Worldwide			-14	%			-10	%			-5	%			15	%				22	%			18	%			13	%			4	%
Orbitz Worldwide Transaction Growth			-12	%			3	%			7	%			20	%				20	%			5	%			5	%			1	%
Orbitz Worldwide Hotel Room Night Growth			-1	%			2	%			3	%			13	%				13	%			9	%			5	%			4	%
Net Revenue (in thousands)
Domestic
Air Transactional		$	66,063			$	53,577			$	47,945			$	46,408				$	52,846			$	53,867			$	48,280			$	49,757
Non-air Transactional			74,097				79,103				79,675				70,372					77,420				84,896				88,357				73,743
Non-transactional			16,861				16,362				16,393				18,095					13,729				12,547				11,936				12,207
Total			157,021				149,042				144,013				134,875					143,995				151,310				148,573				135,707
International
Air Transactional			15,265				15,389				11,930				13,066					18,779				16,996				16,920				17,123
Non-air Transactional			15,431				22,498				29,616				25,511					23,404				24,191				27,683				28,170
Non-transactional			676				1,030				1,044				1,241					975				994				1,303				1,364
Total			31,372				38,917				42,590				39,818					43,158				42,181				45,906				46,657
Orbitz Worldwide		$	188,393			$	187,959			$	186,603			$	174,693				$	187,153			$	193,491			$	194,479			$	182,364
Year over Year Net Revenue Growth
Transactional
Domestic			-8	%			-18	%			-24	%			-12	%				-7	%			5	%			7	%			6	%
International			-39	%			-24	%			-18	%			49	%				37	%			9	%			7	%			17	%
Orbitz Worldwide			-16	%			-20	%			-23	%			-2	%				1	%			6	%			7	%			9	%
Transactional at Constant Currency
Domestic			-8	%			-18	%			-24	%			-12	%				-7	%			5	%			7	%			6	%
International			-23	%			-9	%			-12	%			25	%				19	%			6	%			7	%			16	%
Orbitz Worldwide			-11	%			-17	%			-22	%			-5	%				-2	%			5	%			7	%			8	%
Non-transactional			4	%			-5	%			-12	%			-10	%				-16	%			-22	%			-24	%			-30	%
Orbitz Worldwide			-14	%			-19	%			-22	%			-3	%				-1	%			3	%			4	%			4	%
Orbitz Worldwide at Constant Currency			-10	%			-15	%			-21	%			-6	%				-3	%			2	%			4	%			4	%