Expedia Inc. reported its first quarter results and indicated that operating income declined because of the increased expenses tied to technology investments and international expansion.
For the quarter, which ended March 31, 2011, net income fell 12% to $52 million, compared with the year-earlier period. Revenue rose 15% to $822.2 million.
In Expedia's largest business, hotels, revenue jumped 16%, with an increase in room nights leading the charge.
The company's second largest business, advertising and media, saw revenue rise 23%, propelled by a 32% increase in third-party revenue for TripAdvisor. Expedia and TripAdvisor are slated to become two publicly traded companies.
The American Airlines dispute hurt Expedia's air business, which accounts for 13% of Expedia revenue compared with 15% for the advertising and media business.
Worldwide air revenue for the company jumped 6% based on an 18% increase in revenue per ticket, but that was partially offset by a 10% decline in ticket volume.
Expedia tied the decrease in air ticket volumes to higher airfares "and lack of American Airlines content" for the entire first quarter.
American Airlines' flights returned to Expedia and Hotwire sites worldwide on April 4.