SAN FRANCISCO, California: Airbnb shares climbed 14% to their highest level in more than four years on August 7 after the vacation-rental company raised its full-year revenue forecast, easing investor concerns that the conflict in the Middle East would weaken global travel demand.

As the war in Iran enters its sixth month, hotel operators and online travel companies are relying on resilient leisure travel and upcoming international sporting events to help offset potential disruption.

"Despite the ongoing conflict in the Middle East, we continue to see strong underlying demand globally," Chief Financial Officer Elinor Mertz said on Thursday, adding that the company had not assumed any significant impact on the current quarter.

Airbnb also highlighted progress from its artificial intelligence investments at a time when AI has raised questions about the future of traditional travel companies. Earlier this week, Booking Holdings said it was seeing positive returns from its own AI initiatives.

The company now expects full-year revenue growth of at least the mid-teens, raising its previous forecast of low- to mid-teens growth, citing resilient travel demand.

"In addition to building out services and experiences, Airbnb is growing hotel supply, such that room nights grew at three times the rate of homes. We see these verticals adding billions in incremental bookings through the end of the decade," Morningstar analyst Dan Wasiolek said.

Airbnb reported second-quarter revenue of $3.61 billion, topping analysts' estimates of $3.57 billion, according to LSEG data.

Analysts at D.A. Davidson described Airbnb as the "best-positioned online travel agency" to navigate geopolitical uncertainty, inflation and AI-related shifts in internet traffic, citing the company's strong U.S. business, diverse accommodation options and broad global footprint.

The company's shares traded at about $173 in early trading and have gained 14% so far this year.

"AI is the best thing to ever happen to Airbnb," Chief Executive Brian Chesky said during a post-earnings conference call.

Company executives said customer support costs per booking fell about 16% year over year, helped in part by improvements to Airbnb's AI assistant.

Needham analysts said Airbnb has been rebuilding its business to move faster with AI, while Wedbush said the company's AI initiatives were accelerating product launches and improving cost efficiency.