As economic concerns have eroded travel budgets this year, Priceline and rivals Orbitz Worldwide (OWW.N) and Expedia Inc (EXPE.O) have fought back with sales and fee-waivers designed to bolster bookings during the peak summer season.

"Visibility for the worldwide economy and the travel industry in particular, remains cloudy for 2009," Priceline Chief Executive Jeffrey Boyd said in a statement. "Macroeconomic conditions continue to impact travel demand, pricing and foreign currency exchange rates."

Excluding one-time items, the results beat the analysts' average forecast issued by Reuters Estimates, sending Priceline shares up more than 3 percent.

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