Expedia Expecting Impact From New GDS Economics

Expedia has not been impacted by the altered economics stemming from new agreements between global distribution system operators and major U.S. airlines, but that will change in the second half of the year, said CEO and president Dara Khosrowshahi. Khosrowshahi and chairman Barry Diller yesterday told analysts that Expedia's first-quarter financial performance fell short of expectations and that 2006 would be a challenging year for the company.