Booking Holdings beats quarterly profit estimates but warns of Middle East pressures
BKNG•Middle East conflict clouds travel outlook
Booking said on Tuesday it remained mindful of the conflict and would monitor the direct and indirect impact on travel demand.
The conflict in the Middle East has clouded the travel industry's outlook for the rest of the year, and a prolonged war could further push up costs for consumers, weighing on global travel spending.
Hotel operators such as Marriott, Hilton and Hyatt have flagged a drag in room revenue in the Middle East region as the conflict enters its sixth month.
However, the industry is banking on resilient business and leisure travel demand along with gains from the recently concluded FIFA World Cup to help absorb the shock.
The uncertainty comes as worries about AI agents, such as OpenAI's ChatGPT and Google's Gemini, taking over the booking process have weighed on share performance of online travel companies.
Booking Holdings' shares have trailed peer Expedia and the broader S&P 500 benchmark over the past six months.
Quarterly profit beats estimates as international travel demand grows
Aug. 4 (Reuters) - Booking Holdings beat Wall Street estimates for second-quarter profit on Tuesday amid growing demand for international travel, but warned that the conflict in the Middle East pressured travel to the region.
Shares of the company, the first major U.S. online travel firm to report results, rose 6% in extended trading.
Norwalk, Connecticut-based Booking posted an adjusted profit of $2.54 per share, compared with analysts' estimates of $2.45, according to data compiled by LSEG.
