AMR Corp.'s (AMR) American Airlines said it would pull its flight listings from Orbitz Worldwide Inc. (OWW), beginning Dec. 1, unless the two companies can agree on how the online-travel agent gets access to the data.

"This is a travel-distribution industry issue," Orbitz President and Chief Executive Barney Harford said Thursday. American wants to "force agencies to connect directly to [American's] system to access content as opposed to using global distribution systems," or GDS.

Some airlines, American in particular, have been vocal in wanting to share the expenses of providing access to their flight listings with travel agents and online travel sites. American's move is an attempt to change how that data are distributed and would reduce the airline's costs, cut out the middleman and enable it to get a bigger hold of online-travel purchases.

American spokeswoman Mary Sanderson said that the decision wasn't made because of anything Orbitz did and that the airline is in various stages of discussion with other online travel agents.

"This is about trying to get our distribution costs down and make our distribution channels be more efficient so we can offer consumers the lowest prices possible," Sanderson said.

The travel industry was hit hard during the recession, with consumers and business travelers scaling back on spending. To deal with waning revenue, airlines slashed capacity and costs, and charged customers for everything from beverages to checked luggage. With little left to cut, airlines have looked to distribution costs as the next big frontier in terms of reducing expenses.

Traditionally, a GDS--such as Travelport Ltd. and Sabre Holdings Corp. (TSG)--acts as intermediary between travel agents and travel providers, working out financial terms and facilitating the search and booking of flights. The airlines are charged a fee for the GDS' service.

"It's very clear that American has drawn a line in the sand and is girding itself for a fight," Forrester Research analyst Henry Harteveldt said. "I understand American's desire to reduce costs and have more control over its distribution strategy, but if it pulls out of GDS, it's possible it may be the only airline doing this and it may be counterproductive."

Orbitz CEO Harford said no other airlines or partners have approached Orbitz to terminate their agreements like American Airlines has.

"We have very strong relationships with the vast majority of our supply partners," Harford said. "This really is an initiative that is unique to American."

Orbitz shares, down 20% this year, recently dropped 14% to $5.88.

Representatives from United Continental Holdings Inc. (UAL), Delta Air Lines Inc. (DAL) and US Airways Group Inc. (LCC) were not immediately available for comment.

American's Sanderson said that customers can still compare and purchase American fares on Orbitz sites and that the airline continues to negotiate with Orbitz to reach a "viable, mutually beneficial agreement."

The airline refuted claims by Orbitz that the move would limit customer choice. "We believe that together with our travel partners we can deliver more customized and relevant products and services to our customers, but we must look beyond the current paradigm to succeed in this quest," the company said in an emailed statement.

Travelport said American's action violates its "contractual obligations" and could lead to inefficiencies and associated costs. Travelport said it would take "a number of actions to defend travel agents and consumers" but didn't outline its moves.

Travelport, which owns about 48% of Orbitz, is a private company owned by Blackstone Group L.P. (BX), One Equity Partners, Technology Crossover Ventures and Travelport management.

Representatives from Orbitz rivals Expedia Inc. (EXPE) and Priceline.com Inc. (PCLN) weren't immediately available to comment, nor was Sabre, which also owns online travel agent Travelocity.

Expedia shares slid 6.5% to $26.81, and Priceline added 5 cents to $380.04.

Meanwhile, Orbitz reported a third-quarter profit of $15.3 million, or 15 cents a share, above year-ago earnings of $7 million, or 8 cents a share, and the average estimate of analysts surveyed by Thomson Reuters of 9 cents a share.

Revenue increased 4% to $194.5 million. The company in August projected revenue growth of 3% to 6%, below analysts' views at the time.

Gross bookings climbed 12%, mostly on higher air fares and transaction volume. Flights bookings rose 13%, while hotel-room nights soared 57%.

CEO Harford said Orbitz factored in the potential impact from the American Airlines issue into its financial forecast for the year. The company said it expects revenue to rise 1% to 2% from 2009. It also lowered its expectations for full-year earnings before interest, taxes, depreciation and amortization to 4% to 6% growth from previous estimates for 5% to 10% growth.

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

(Tess Stynes contributed to this report.)
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