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eDreams Odigeo SL tumbled in Madrid trading after Iberia Airlines said it would stop marketing its tickets with the Spanish online travel service alleging the site breached European law. Bonds of a related company, Geo Travel Finance SCA, plunged.
eDreams stock dropped 59 percent to 1.01 euros, the biggest drop since it April 8 initial public offering, before being suspended for trading by regulators. Geo Travel’s 325 million euros ($412 million) of 7.5 percent bonds due in 2018 dropped as much as 31 percent. A press officer for eDreams declined to comment on Iberia’s comments when contacted by telephone.
The decision to remove ticketing from the site was made due to eDreams “not fulfilling its obligation to transparently report total ticket prices to clients from the start of the booking process,” Iberia said today in an e-mailed statement.
Iberia said tickets from its partner British Airways Plc also will be withdrawn from the Barcelona-based travel operator’s websites, in the statement. BA and Iberia are both units of International Consolidated Airlines Group SA.
eDreams went public in April at 10.25 euros a share. In June the company said that its 2015 earnings before interest, tax, depreciation and amortization would be “difficult to discern” after it was affected by changes to Google Inc.’s search algorithm.
The decision to remove its tickets from the eDreams and the related Opodo websites follows weeks of negotiations, Victor Moneo, head of Spain sales for Iberia and BA, said in the statement.
With assistance from Luca Casiraghi in London.
To contact the reporters on this story: Rodrigo Orihuela in Madrid at firstname.lastname@example.org; Macarena Munoz in Madrid at email@example.com To contact the editors responsible for this story: Kenneth Wong at firstname.lastname@example.org Todd White, Jennifer Joan Lee.