Proactive Investors - Expedia (NASDAQ:EXPE) shares were knocked over 13% lower in pre-market trading as news broke of its chief executive stepping down and the company cautioning that air travel demand appears to be softening.
Boss Peter Kern will be succeeded by insider Ariane Gorin in May, Expedia announced alongside final-quarter results on Thursday. Kern will remain as the travel firm’s vice chairman.
The announcement came as the company said it anticipates travel demand could be muted heading into the new year.
"On a macro level, we expect travel demand to remain relatively healthy, but we expect growth rates across the world to decelerate," Kern said in an analyst call.
Revenue climbed by 10% to $2.9 billion over the final quarter but was pressured by a fall in average ticket prices, according to chief financial officer Julie Whalen.
Groundings of Boeing (NYSE:BA) 737 Max 9s following an incident where a door panel flew off an Air Alaska flight last month had also weighed on bookings, Whalen said.
Bookings growth over the first quarter of the current year will likely be in the low to mid-single digits range, Expedia guided, compared with 6% to $21.7 billion in three months to December last year.
Revenue growth was tipped to come in around the mid-digit range meanwhile, with the slowdown following a rapid post-pandemic recovery for the aviation and travel sectors.
“Moving forward, we are now able to execute without the numerous constraints we have faced in recent years,” Kern commented.
“It is really exciting to be in a position to go back on [the] offence and lead the industry.”
Shares dipped 13% to $138.68.