UPDATE 1-Orbitz says American Airlines fares back on its websites

Fri Aug 29, 2014 5:36pm EDT

(Adds details, airline comment)

NEW YORK Aug 29 (Reuters) - American Airlines Group Inc airfares went back on Orbitz Worldwide Inc websites on Friday, after the two companies patched up a dispute that caused American to pull the information on Tuesday.

The fares and schedules for thousands of flights were restored effective immediately, after being pulled just as abruptly on Tuesday after the two sides disagreed over a new contract, the companies said.

American said it would not remove US Airways fares on Sept. 1, as it had threatened when talks between the two companies broke down earlier. The two airlines merged in December. The companies declined to disclose the nature of their disagreement, other than that it was over economic terms.

"We are pleased that our long-standing relationship with American Airlines allowed us to quickly resolve business matters," Orbitz.com President Sam Fulton said in a statement.

Orbitz, based in Chicago, sells through Orbitz.com, CheapTickets.com and other sites. Its Orbitz for Business service for corporate customers wasn't affected by the dispute.

American Airlines said the companies had reached a letter of intent and were working on final agreements.

For customers, the deal doesn't affect purchased tickets, which remained valid even after American pulled its fares on Tuesday. But it means Orbitz customers can change their reservations by calling Orbitz, rather than American.

Orbitz shares closed up 3.4 percent at $8.20 on the New York Stock Exchange on Friday. The Orbitz announcement came after New York trading closed, and the stock was slightly higher in after-hours trading. American Airlines shares closed down 0.7 percent at $38.88 on the Nasdaq. (Reporting by Alwyn Scott; Editing by Jonathan Oatis, Bernard Orr)

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