The better-than-expected results saw net loss for the period ending September 30 down to $3.6m (£2.5m) from $199m (£135.9m) during the same period in 2000.
Priceline said that it had been affected by the terrorist attacks on September 11. Although it said that demand had "substantially recovered" since then, it said that refunds processed by Priceline.com and pressure from deeply discounted travel prices to spur demand had hampered the recovery somewhat.
The company reported that it had sold 3m travel products during the quarter, added 927,000 new customers and that repeat business stood at a record 63%.
Richard Braddock, chairman and CEO of Priceline, said the company was in a strong position for the future. "We are targeting fourth-quarter revenues in the range of $215m (£146.8m) to $235m (£160.4m)," he said.
Yesterday, Priceline shares, listed on Nasdaq, traded as high as $4.97 (£3.39), but closed at $4.40 (£3) -- down 8.5% on the previous day's high of $4.81 (£3.28).
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