It recorded a net loss of $4.8m (£3.4m) for the period ending September 30, compared with $30.8m (£21.7m) for the same time last year, an improvement of 84.4%.
The travel company was affected by the September 11 terrorist attacks on the US, with gross profit down 4% from the previous quarter, owing to what the company described as "increased call centre costs", mainly from processing cancellations of travel plans by nervous tourists.
Transaction volumes for the first half of October have, however, recovered to more than 80% of their pre-attack levels, Expedia said.
Expedia's shares, listed on the Nasdaq, closed marginally down in yesterday's trading. They were priced at $29.23 (£20.57), down by 2% on the previous day's trading. Expedia, like many new-economy companies, has seen its share price plummet from a high of $51.84 (£36.48) this year to as low as $8.63 (£6.07), but it has recovered much ground over the last few weeks.
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