Expedia shares tumble as Q2 bookings disappoint

EXPEDIA on Thursday (Aug 3) reported smaller-than-expected quarterly bookings, sending the online travel firm’s shares tumbling 9 per cent in early trading and amplifying fears of a slowdown in travel demand.

Gross bookings of US$27.3 billion missed analysts’ estimates of US$28.2 billion, according to Refinitiv data.

“Agency” bookings, where Expedia acts as an intermediary between travellers and companies, fell to US$12.4 billion from US$12.8 billion.

Investor concerns over travel demand were exacerbated after Southwest Airlines and Alaska Air last week offered downbeat full-year forecasts, prompting a sell-off in their shares.

Expedia reported an adjusted profit of US$2.89 per share, beating expectations of US$2.32.

Revenue rose 6 per cent to US$3.36 billion, just below expectations of US$3.37 billion.

SEE ALSO

Expedia Group beats Street estimates on record lodging bookings

Expedia’s shares have climbed 34.7 per cent this year. REUTERS