The online travel bookings giant Expedia (NASDAQ:EXPE) has posted its financial results for the fourth quarter and full 2020, showing a high revenue slump in a year that the Covid-19 pandemic widely decimated global travel. Over the year’s Expedia’s revenue dropped 57% to $5.2 billion in 2020 while gross bookings fell 66% to $36.7 billion. 

After posting three consecutive profitable quarters in 2019, Expedia posted net losses in the entire four quarters in 2020. 

For Expedia, a revenue slump was widely expected due to the Covid-19 pandemic, such that in the heightened months of the pandemic last year, the company moved to raise an urgent $3.2 billion in debt and equity funding to balance its shaky finances. Now, as vaccines get rolled out globally for the Covid-19 ailment, it’s expected that global travel will gradually recover and bring better fortunes for Expedia.

In March 2020, a month where the Covid-19 outbreak was at freshly high levels, Expedia’s share price sunk to an all-time low of $47. In later months, however, it has gradually recovered to pre-pandemic levels, now trading at over $147 per share.

Expedia ended 2020 with over $4 billion in cash and short-term investments at hand, and with that, the company could withstand further significant losses as the global travel business gradually recovers to a strong footing and likely returns Expedia to profitability.

In 2020, Expedia posted a net loss of $2.7 billion, compared to a profit of $572 million in 2019.

Expedia’s full 2020 financial report is shown below.

Earnings Release Q4 2020 VF on Scribd

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