Expedia is monitoring potential disruptions from the ongoing U.S. government shutdown and related FAA-ordered flight cancellations.
The Seattle-based company is “watching the government shutdown very closely,” said Scott Schenkel, chief financial officer, speaking on Expedia’s earnings call Thursday.
Schenkel said Expedia routinely factors in such uncertainties when setting forecasts, especially in volatile conditions.
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 for its third quarter, reporting 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 lengths of stay and longer booking windows, both signs of a stronger consumer.”
Gorin, who is in her first year leading Expedia, called out an “exceptional quarter” for the company’s B2B business.
She also noted that “AI-driven search is transforming the way travelers discover and plan their trips,” and cited partnerships with Google, OpenAI, and Perplexity.
“We’re moving fast and deliberately to ensure our brands show up wherever travelers are,” she said.
Schenkel said AI is also helping internally: “Our virtual agents resolve over 50% of traveler queries. And when human support is needed, it delivers concise summaries to the agent, reducing our service cost per transaction,” he said.
Gorin said the company remains confident heading into the final quarter of the year. “While we saw continued momentum in October, we’re keeping a close eye on economic indicators and remaining focused and agile amidst a dynamic macro environment,” she said.
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