Expedia is monitoring potential disruptions from the ongoing US government shutdown and related FAA-orders flight cancelled.
The Seattle-based company is “watching the government shutdown very closely,” Scott said Schenkel, chief financial officer, speaking on Expedia’s earnings call Thursday.
Schenkel said Expedia routinely factors in such uncertainty when setting forecasts, especially in volatile situations.
Air travel is a relatively small part of the company’s business — about $101 million in revenue last quarter.
Expedia shares rose nearly 20% on Friday after the company topped expectations Third trimesterReported revenue growth of 9% to $4.41 billion, and adjusted earnings per share of $7.57. The company raised its full-year guidance.
“The market was healthy in the quarter with an acceleration in the U.S. and continued strength in the rest of the world,” Expedia CEO Ariane Gorin said on the earnings call. “We saw longer stays and longer booking windows, both signs of a strong consumer.”
Gorin, who is in his first year leading Expedia, called it a “tremendous quarter” for the company’s B2B business.
He also noted that “AI-powered search is transforming the way travelers discover and plan their trips,” and mentioned partnerships with Google, OpenAI and Perplexity.
Expedia watching government shutdown ‘very closely’
“We are moving quickly and deliberately to ensure our brands are present wherever travelers are,” he said.
AI is also helping internally, Schenkel said: “Our virtual agents solve more than 50% of travelers’ questions. And when human assistance is needed, it provides a brief summary to the agent, reducing our service cost per transaction,” he said.
Gorin said the company is confident heading into the final quarter of the year. “While we saw continued momentum in October, we are keeping a close eye on economic indicators and remain focused and agile amid a dynamic macro environment,” he said.