Despegar.com, Corp, announced that management is withdrawing the first quarter 2020 guidance provided during its fourth-quarter 2019 earnings call that took place on March 5, 2020, as the extent and duration of COVID-19 and the impact it will have on the travel industry, is difficult to predict at this time.
As many countries issued travel and flight restrictions to mitigate the consequences of the spread of COVID-19, the travel market has deteriorated more than anticipated at the time of the Company’s 4Q19 earnings call.
Mr. Damian Scokin, CEO of Despegar noted: “As we were seeing early signs of disruption to the global travel industry, we took the unusual step of providing next quarter guidance on our fourth-quarter earnings conference call. Given the rapidly unfolding global scenario since then, we are now withdrawing this guidance.”
“We remain confident in the strength of the Company to navigate through this force majeure situation by leveraging Despegar’s strong capital structure, solid footprint, and key competencies in managing travel disruption. As this situation develops, we remain focused on serving our customers and working closely with our travel partners while committed to the safety of our employees.”