Expedia forecasts downbeat fourth-quarter revenue as geopolitical tensions weigh
Travel disruptions to and from the Middle East and high airfares continue to drag on earnings
Expedia Group, the online travel firm, forecasted fourth-quarter revenue lower than Wall Street's expectations, as the industry grapples with conflicts in the Middle East and unrest in Europe. This news led its shares to drop 9% in extended trading. Despite this, the company's quarterly results surpassed estimates, with revenue at $4.94 billion, up 12% from the previous period.
The company's CEO, Ariane Gorin, highlighted strong US customer demand, both domestically and for outbound travel to Europe and Asia, even amid higher airfares. Expedia increased its annual gross bookings forecast to between $131.4 billion and $131.9 billion, surpassing the average analyst expectation of $130.22 billion. The company now anticipates annual revenue of $16.37 billion to $16.43 billion, an improvement from its earlier forecast of $16.05 billion to $16.22 billion.
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