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
Published Thu, Nov 5, 2026 · 07:07 AM
ONLINE travel firm Expedia Group forecast fourth-quarter revenue largely below Wall Street expectations, as the industry struggles with the Middle East conflict and unrest in Europe, sending its shares down about 6 per cent in extended trade.
The company on Wednesday (Nov 4) projected fourth-quarter revenue in the range of US$3.69 billion to US$3.75 billion, with the midpoint below analysts’ estimates of US$3.74 billion.
The downbeat forecast overshadowed a beat on third-quarter revenue and profit, as steady spending by affluent consumers supported international travel demand amid persistent inflation.
“The US consumer was strong both in domestic travel and in outbound to Europe and Asia,” CEO Ariane Gorin told Reuters.
Gorin pinned moderation in the fourth-quarter forecast on the US midterm elections and unrest in the Middle East and Europe.
Her comment echoes those from peer Booking Holdings on Tuesday on travel disruptions to and from the Middle East and the impact of elevated airfares, alongside unrest in certain European cities.
Hotel operators including Hilton and Marriott have also flagged a drag from the Middle East conflict on their fourth-quarter results, along with impact from the elections.
In Europe, people travelled more domestically than long-haul outbound, Gorin noted.
Expedia raised its annual gross bookings forecast to the range of US$131.4 billion to US$131.9 billion, from US$129.5 billion to US$130.8 billion earlier.
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Analysts on average were expecting annual gross bookings of US$130.22 billion, according to data compiled by LSEG.
The Seattle-based company expects annual revenue of US$16.37 billion to US$16.43 billion, compared with US$16.05 billion to US$16.22 billion previously.
Expedia reported third-quarter adjusted profit of US$9.39 per share, beating Wall Street estimates of US$8.89.
The Vrbo parent’s revenue rose about 12 per cent to US$4.94 billion for the quarter ended Sep 30, beating estimates of US$4.74 billion. REUTERS
