Earnings at the nation’s major travel agencies, Lion Travel Service Co (雄獅旅行社) and Phoenix Tours International Inc (鳳凰國際旅行社), last quarter fell more than 70 percent and they might fare worse this quarter as popular travel destinations remain closed to foreign visitors.
Lion Travel yesterday posted NT$34.57 million (US$1.16 million) in net income during the January-to-March period, or earnings per share of NT$0.49, while Phoenix Tours reported NT$4.62 million in net profit, or earnings per share of NT$0.08, according to stock exchange filings.
The results represented a year-on-year drop of 73.08 percent for Lion Travel and an 84.96 percent slump for Phoenix Tours, as the two companies canceled all outbound tours amid the COVID-19 pandemic.
However, strong business in January helped avert some losses, the companies said.
The sector might not have hit bottom, despite poor revenue last month.
Lion Travel posted NT$101.07 million in sales last month, down 95.94 percent year-on-year, while Phoenix Tours reported NT$11.65 million, a decline of 95.86 percent from a year earlier.
Confirmed virus cases continue to spike in many countries, though the pace has flattened in Europe and the US.
Although many nations are talking about reopening their economies, they intend to maintain social distancing recommendations, which are unfavorable for international travel.
Lion Travel and Phoenix Tours are focusing on domestic tourism and said that things would improve from this month with very few infections in Taiwan.
The sector still has a long way to go to return to normal before the world lifts travel restrictions and people regain confidence in the safety of overseas tourism, Phoenix Tours said.
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