Trip.com, China’s largest online travel site, said today it posted a profit in the second quarter compared to a loss a year earlier as global bookings improved despite the lingering impact of Covid-19 at home.
Trip.com made 43 million yuan, or $6 million, in the three months to June, compared to a loss of 659 million yuan a year earlier. Sales fell 32% from a year earlier to 4.0 billion “primarily due to the ongoing disruptions caused by the resurgence of Covid-19 in China,” the company said. Both airline ticket and hotel bookings on its global platforms were up more than 100% year-over-year in the second quarter, it noted.
“Despite the challenges in the Chinese domestic market in the first two months of the second quarter, fundamental demand for travel remained solid,” said CEO Jane Sun.
Executive Chairman James Liang said in a statement: “The global travel industry has made continued progress towards a full recovery. Recovery momentum in Europe and the United States remained robust, and the recovery of the travel business in the Asia-Pacific region also accelerated thanks to the continued easing of travel restrictions.”
“We are confident that we can further strengthen our competitive position and meet the pent-up demand,” said Liang.
Trip.com’s US-traded stock has lost 15% in the past year; they were down 8% today ahead of the announcement.
Trip.com has three billionaires on its board: Baidu CEO Robin Li, Sequoia China Founding Managing Partner Neil Shen and founder of the H Group hotel chain Ji Qi. Shen and another member, JP Gan, were members of the TSWT Midas 2022 list.
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