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Slow airline sales
knock wind out
of Priceline stock

The firm's warning
also deflates Cheap Tickets

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From staff and wire reports

NORWALK, Conn. -- Priceline.com Inc., the Internet bidding service, said third-quarter revenue will miss analysts' estimates because of disappointing airline-ticket sales. Its shares declined 42 percent, their biggest drop ever.

Priceline fell $7.89 to $10.75 on the Nasdaq. The stock has dropped 93 percent from a high of $165 in April 1999, wiping out $21.7 billion in market value.

"Today, you can name your own price for Priceline," said Mark Brinkley, a trader at hedge fund Red Wolf Capital Management.

Priceline's sales were hurt by a lower average offer price for airline tickets. Airlines imposed a second $20 fuel surcharge early this month for increased fuel prices, canceled several flights and introduced their own sale fares in September, the company said.

Priceline's bad news also dragged down Honolulu-based Cheap Tickets Inc., which sells discounted airline tickets via the Internet in addition to its sales by telephone.

Cheap Tickets' stock closed today down $1.06, or about 10 percent, at $9.56 on the Nasdaq. Earlier in the day, the shares hit a 52-week low of $8.50. The stock is down 30.6 percent year to date.