Booking profit beats estimates; Middle East worries weigh on forecast

Booking Holdings beat Wall Street estimates for second-quarter profit on resilient U.S. domestic travel, but trimmed its annual gross bookings forecast as the online travel firm navigates the fallout of the conflict in the Middle East.

Shares of the Norwalk, Connecticut-based company, which is kicking off earnings season for the U.S. online travel industry, rose 6% in extended trading on Tuesday.

Appetite for travel has remained steady, despite the conflict in the Middle East, which has entered its sixth month, clouding the outlook for the global industry.

"While long-haul international travel remained pressured by elevated airline prices and reduced capacity due to the conflict in the Middle East, domestic and intraregional travel remained relatively healthy," CEO Glenn Fogel said on a post-earnings call.

Booking said it expects reduced inbound travel to the Middle East and pressures on global flight routes to persist through the third quarter.