Expedia watching government shutdown ‘very closely' as shares surge after Q3 earnings top estimates

Core Insights - Expedia is closely monitoring potential disruptions from the ongoing U.S. government shutdown and related FAA-ordered flight cancellations [2][3] - The company reported a revenue growth of 9% to $4.41 billion for the third quarter, with adjusted earnings per share of $7.57, leading to a nearly 20% rise in shares [3][4] - CEO Ariane Gorin highlighted a strong market with longer lengths of stay and booking windows, indicating a robust consumer demand [4][6] Financial Performance - Expedia's revenue from air travel was approximately $101 million in the last quarter, which is a relatively small portion of its overall business [3] - The company raised its full-year guidance following the strong performance in Q3 [3] Strategic Initiatives - AI-driven search is transforming how travelers discover and plan trips, with partnerships established with Google, OpenAI, and Perplexity [5] - Internal AI applications have improved efficiency, with virtual agents resolving over 50% of traveler queries, thus reducing service costs [5] Market Outlook - The company remains confident heading into the final quarter of the year, while keeping a close watch on economic indicators [6]