Airbnb loss nearly doubles in Q4, pre-virus

Airbnb Inc.’s losses almost doubled in the fourth quarter of last year, even before the coronavirus pandemic caused global travel to nearly grind to a halt.

The world’s biggest home-sharing firm reported a loss of US$ 276.4 million excluding interest, taxes, depreciation and amortization, compared with a loss of US$ 143.7 million a year earlier, according to a person familiar with the company’s accounts. Revenue increased 32 per cent in the period to US$ 1.1 billion, and it has more than US$2 billion in the bank, the person said. Airbnb declined to comment.

COVID-19 has hit the travel industry hard and is likely to throw a wrench in the startup’s growth trajectory and possibly thwart its plans for a public stock listing this year. Airbnb projected revenue to increase 25 per cent in the first quarter of this year, according to the person, who asked not to be named discussing information that’s not public. That projection likely underestimated the full effect of the coronavirus on international travel, the person said.

The coronavirus is now active in more than 100 countries, and has put Italy on near total lockdown. The Trump administration announced Wednesday that it would significantly restrict travel to the U. S. from Europe for 30 days. Airlines have cancelled flights to several countries, hotels have closed and many companies have forbidden international travel for their employees. On Monday, Booking Holdings Inc., the world’s largest online travel- booking site, withdrew its already bleak first-quarter guidance, citing the worsening impact of the coronavirus.