Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

American Airlines reforges alliance with Expedia

By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- American Airlines patched things up with Expedia, allowing customers to once again shop for American flights on the travel website, the companies said.

The companies said that fare and schedule information on American Airlines and American Eagle, both owned by AMR Corp (AMR, Fortune 500)., is once again available on Expedia (EXPE) and its affiliated website Hotwire.

The agreement fixes a distribution dispute that's been simmering since December, when Expedia pulled American's fares from its website amid a conflict over the use of online travel sites. American had been pushing the use of its own direct connect link.

As the result of the conflict, American severed its relationship with Orbitz (OWW), another online travel platform, back in December. As of Tuesday, American's fares were still absent from the Orbitz site.

American's fares are still available on Priceline, having signed a deal with that company in January.

Expedia's stock rose nearly 4% on the news.

"While the release is light on details, we view this move as positive for Expedia as any contribution from [American] is incremental to management's 2011 guidance," read an investor's note from Youssef Squali, managing director for Jefferies.

Squali estimates that American bookings will contribute 5 to 7 cents to Expedia's annual earnings per share. To top of page

Index Last Change % Change
Dow 23,157.60 160.16 0.70%
Nasdaq 6,624.22 0.56 0.01%
S&P 500 2,561.26 1.90 0.07%
Treasuries 2.34 0.04 1.78%
Data as of 1:57am ET
Company Price Change % Change
Bank of America Corp... 26.48 0.28 1.07%
Micron Technology In... 41.65 1.26 3.12%
Advanced Micro Devic... 14.07 -0.09 -0.64%
AT&T Inc 35.71 -0.52 -1.44%
International Busine... 159.53 12.99 8.86%
Data as of Oct 18
Sponsors

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

Next to Mexico and Chile, America's elderly are experiencing some of the worst income inequality out of any developed country, according to the latest report from the Organisation for Economic Co-operation and Development More

Sometimes you need to improve your credit quickly. Here are a few steps you can take to boost your rating in a pinch. More