Booking cuts expectations amid Middle East unrest

Published: 2026-04-29 01:01:49 ET BKNG

Published on 04/29/2026 at 01:01 am EDT

US online travel giant Booking Holdings posted higher profits in the first quarter of 2026, but at the same time warned that the conflict in the Middle East will weigh on growth.

The company reported adjusted earnings of $1.14 per share, up from $0.99 a year earlier and better than analysts had expected. Revenue also came in at $5.53 billion, an increase of around 16 per cent year on year, again slightly above expectations.

Growth was supported by strong global demand for travel. The number of bookings and overnight stays increased, with gross bookings rising to $53.8 billion, an increase of roughly 15 per cent.

Even so, the company scaled back its outlook for the remainder of the year. According to Booking, the war in the Middle East has had a noticeable impact on travel patterns. In the first quarter, the conflict shaved about 2 percentage points off the growth in the number of booked overnight stays.

In addition, the company expects the disruptions — especially on key international routes, such as between Europe and Asia — to be felt until at least the end of June.

Because of these uncertainties, Booking is now counting on revenue growth in the high single digits for the whole of 2026, lower than the previously forecast growth in the low double digits.

According to chief financial officer Ewout Steenbergen, persistent geopolitical tensions could also have broader economic consequences, such as higher fuel costs, reduced airline capacity and weaker consumer confidence in travel.

Despite these headwinds, chief executive Glenn Fogel remains optimistic about the long term. He stresses that the Middle East is a relatively small but important part of the market and that demand for travel will ultimately recover once the situation stabilises.

Booking Holdings, also the parent company of Priceline, Agoda, Kayak and OpenTable, operates in more than 220 countries and holds a strong position in the global travel industry.

Despite a share price drop of more than 16 per cent this year, investor platform The Motley Fool remains upbeat about Booking’s prospects.

Firstly, the company is already ahead of the curve on artificial intelligence. Booking is working with major technology firms such as Alphabet, Amazon, OpenAI and Microsoft to integrate AI travel assistants. Thanks to its vast trove of proprietary data and global scale, it has, according to analysts, an edge over new rivals.

Secondly, the financial results remain strong. In 2025, revenue rose by 13 per cent to $26.9 billion and adjusted earnings per share by 22 per cent to $228.60. Flight bookings increased by 37 per cent to 68 million.

Thirdly, Booking is benefiting from growing travel markets in Asia and the United States. Cross-border travel from China and Southeast Asia in particular continues to pick up. In the US, its Genius loyalty programme is paying off.

There are, however, risks. Higher fuel prices, geopolitical tensions and potentially stricter European regulation could dampen demand for travel. The rise of AI-powered competitors also remains a concern.