Trip.com slumps to Covid-19 induced loss in first quarter
Trip.com Group has reported a $754 million loss in the first quarter as the coronavirus pandemic disrupted global travel.
For the three months to March 31st, the China-based travel operator recorded a net loss of 5.4 billion yuan ($754 million), down from a net income of 4.6 billion yuan in the same period last year.
Net revenue fell 42 per cent on the year, to 4.7 billion yuan.
However, the company glanced toward a positive future, as domestic tourism rebounded and demand for high-end accommodation grew.
“In China, travel activities hit bottom in February, and have since been consistently on a recovery track,” said James Liang, Trip.com executive chairman.
The Nasdaq-listed company operates travel booking sites including Ctrip, Skyscanner and Qunar.
Trip.com attributed the loss to the impact of Covid-19.
While its business in China has shown signs of bouncing back, its international operations may take longer to recover, the company said.
“So far we have seen recovery coming back fastest in the short-haul segments and at lower tier cities in China,” added Liang.