ination guides, and the latest travel industry updates.">
Saturday, January 11, 2025
HomeTravelGloomy Spirit, Expedia reports drag travel stocks lower on demand slowdown fears

Gloomy Spirit, Expedia reports drag travel stocks lower on demand slowdown fears

A Spirit Airlines jet taxis from Newark Liberty International Airport in Newark, New Jersey, U.S. December 6, 2019. Picture taken December 6, 2019. REUTERS/Chris Helgren/File Photo
Aug 3 (Reuters) – U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines (SAVE.N) and Expedia (EXPE.O) that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Spirit, which mainly operates on domestic routes, also forecast weaker-than-expected revenue for the third quarter, with Citi analysts citing the effect from travel demand shifting to international from domestic.
The airline, which also missed second-quarter profit and revenue estimates, has also struggled with pilot attrition and geared turbofan engine issues.
Its shares fell 5.7% in morning trade as current-quarter revenue forecast of between $1.30 billion and $1.32 billion came in below expectations of $1.51 billion, as per Refinitiv data.
Last week, Southwest Airlines (LUV.N) and Alaska Air (ALK.N) had offered downbeat full-year forecasts.
Shares of large U.S. airlines Delta Air Lines (DAL.N), United Airlines (UAL.O) and American Airlines (AAL.O) slipped about 1%, while Southwest fell about 2%.
Adding to the gloom, online travel firm Expedia Inc (EXPE.O) reported smaller-than-expected bookings for the second quarter, even as it said travel demand remained “strong.”
Gross bookings of $27.32 billion missed analysts’ estimates of $28.16 billion.
Revenue from points of sale in the U.S. fell to $2.17 billion from $2.21 billion, while international sales rose.
“We believe this is further evidence of softening in U.S. travel demand trends while international growth continues to outperform,” Wedbush analyst Scott Devitt said in a note.
U.S. domestic airfares had seen some declines as capacity increases, company executives said during an investor call, while cross-border airfares were stable.
Expedia’s shares plunged 14% to $101.29.
The company reported an adjusted profit of $2.89 per share, beating expectations of $2.32 but revenue of $3.36 billion was slightly below expectations.
Tripadvisor (TRIP.O) and Trivago’s (TVAGy.F) U.S-listed shares were down 8.6% and 3.3%, respectively.
Shares of vacation rental firm Airbnb (ABNB.O), which reports results later on Thursday, were down 1.5%.
Reporting by Priyamvada C, Kannaki Deka, Pratyush Thakur in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments

Translate »
×