Expedia said first-quarter profit plunged 51 percent on higher expenses and waning demand for vacation packages. The shares dropped as much as 19 percent after earnings and revenue missed analyst estimates.

Net income declined to $23.3 million, or 6 cents a share, from $48 million, or 14 cents a share, a year earlier. Revenue rose 1.8 percent to $493.9 million, the company, based in Bellevue, Wash., said yesterday.

Expedia, spun off in August from the IAC/InterActiveCorp, run by Barry Diller, increased marketing spending 11 percent, or $21.4 million, and said spending would grow for the rest of the year. Revenue gains were muted by a decline in United States sales and as airlines cut commissions and ticket inventory.

Expedia's shares dropped $3.26, to $16.40, after the market close. They fell 13 cents to $19.66 during regular trading. Results were released after United States markets closed.

Global airline ticket sales fell 7 percent for the quarter that ended March 31 because of lower revenue per ticket. Revenue from airline packages was little changed compared with the year-ago period.

Global merchant hotel revenue rose 3 percent, driven by 11 percent growth in the number of room-nights stayed.

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