Travel is back and these 2 actions celebrate


VSFrom Monday’s session, it looked like the stock market would continue the plunge it suffered at the end of last week, which made April the worst month for the market since the early April slump. the pandemic. However, even if the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P500 (SNP INDEX: ^GSPC)and Nasdaq Compound (NASDAQ INDEX: ^IXIC) were all down 1% to 2% at their worst levels in the session, late-day buying helped push all three indexes higher.


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Data source: Yahoo! Finance.

Tour operators have caught it off guard over the past two years, and many are eagerly waiting for industry conditions to improve. Finally, investors saw signs that a recovery could be here, as both Expedia Group (NASDAQ: EXPE) and Avis Budget Group (NASDAQ: RCA) released encouraging financial reports that investors hope will lead to much more in the near future.

1. Expedia takes off

Shares of Expedia Group rose nearly 2% in after-hours trading. The online travel platform provider pointed to improving trends in the industry, albeit after overcoming concerns early in the first quarter of 2022 stemming from the rise of the omicron variant of the coronavirus.

Image source: Getty Images.

Expedia’s gross bookings were $24.4 billion. This represents a 58% increase over year-ago levels, although it remained 17% below pre-pandemic levels in the first quarter of 2019. Revenue climbed 81% to 2 .25 billion dollars. Expedia lost money again, but the adjusted net losses of $74 million weren’t as severe as some had expected and were down significantly from the prior year’s amounts. Adjusted pretax operating losses were in line with three years earlier, showing Expedia’s success in controlling costs even with low revenues.

The sales force was manifested at all levels. Lodging revenue grew 78%, making up the majority of Expedia’s overall revenue. However, air travel related sales were up 50% year over year, and Expedia also had great success in increasing its share of advertising and media.

It’s still too early to give Expedia the green light, with the war in Ukraine also weighing on international travel. However, investors are pleased to see steady improvement and hope that favorable trends in the travel industry continue to.

2. Notice Speeds Up

Shares of Avis Budget Group were much stronger, rising nearly 7% after hours. the car rental giant benefited from a tight market as travelers get back on the road and need vehicles to get where they want to go.

Avis Budget enjoyed spectacular financial strength in the first quarter of 2022. Revenue jumped 77% to $2.43 billion, the figure exceeding what the car rental company brought in in the first quarter by 27%. 2019 before the pandemic. Utilization rates returned to pre-pandemic levels and Avis Budget reversed a loss a year ago with a whopping $527 million profit. Adjusted earnings were $9.99 per share.

CEO Joe Ferraro also mentioned the impact the omicron variant had early in the period. However, the Avis executive remains comfortable with the company’s position, with ample cash and a set of debts he is confident he can service.

Strong demand for vehicles may not be permanent, especially if supply chain disruptions affecting the auto industry end up reducing demand for used vehicles. For now, however, Avis Budget is enjoying tailwinds and hopes to continue reaping the rewards as 2022 continues.

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Dan Caplinger has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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