Airbnb hopes for quick travel rebound after posting US$1.2bn quarterly loss

Airbnb Inc (NASDAQ:ABNB) said it expects “a travel rebound unlike anything we have seen before” though it posted a huge quarterly loss despite revenues topped 2019 levels.

The travel platform said bookings have increased sharply in countries where the vaccine rollout is progressing well, such as the UK and the US, while demand got a boost in France following the easing of travel restrictions in May.

READ: Airbnb expects travel rebound as 2020 revenue tumbles by a third

The San Francisco-based group saw growth in family and group travel, especially outside of cities, while other areas of strength included North America, domestic travel, nearby stays, long-term stays, and stays in less-densely populated areas.

During the first quarter this year, 24% of stays were of 28 days or more, up from 2019, as people chose to stay away from their homes while working remotely. Half of bookings were for stays of over a week.

Listings in non-urban areas increased almost 30% from the same period in 2019, with the website now counting 4mln hosts across nearly 100,000 cities globally.

In the three months to 31 March, revenue advanced 5% compared to last year and was above 2019 levels, driven by good performance in North America and higher average daily rates.

Underlying loss came in at US$59mln from US$334mln last year thanks to lower operating expenses, but total net loss was US$1.2bn.

Significant items totalled US$782mln including a US$377mln loss related to the repayment of term loans, US$292mln for a mark-to-market adjustment for warrants associated with a term loan, and a US$113mln impairment related to office space in San Francisco.

Shares dipped 2% to US$133.35 in afterhours trading.

Story by ProactiveInvestors