Lion Travel: Airfare Increases and War Impact Lead to Order Shifts to Asia, Australia/New Zealand Routes
Lion Travel General Manager Lai Yi-ching noted that rising international oil prices have led to increased airline fuel surcharges, with short-haul routes rising from US$17.5 to US$45 and long-haul routes from US$45.5 to US$117. Despite higher airfare costs, travel demand remains strong, with Lion Travel's January-February 2026 performance surpassing the same period in 2025. Significant order shifts are seen in Asia and Australia/New Zealand routes, with Australia/New Zealand growing by 40%, Japan tours by 40%, and Korea tours by 20%. Short-haul tour prices increased by less than NT$2,000, and long-haul by about NT$4,000. Lion Travel expects continued growth for the full year, with corporate tours potentially growing by 20%.
📋 Article Processing Timeline
- 📰 Published: April 10, 2026 at 16:16
- 🔍 Collected: April 10, 2026 at 17:00 (44 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 19:01 (122h 1m after Collected)
International oil prices continue to climb, driving up airline operating costs. Domestic airlines have reported adjustments to fuel surcharges to the Civil Aeronautics Administration, effective April 7. The adjustment is significant, with short-haul routes increasing from US$17.5 (approximately NT$563) to US$45 (approximately NT$1,448); long-haul routes increased from US$45.5 (approximately NT$1,464) to US$117 (approximately NT$3,766).
However, fare pressure is not over yet. Some industry players revealed that travel agencies have been notified that some domestic airlines' airfare costs are expected to increase again on April 15, and price hikes may occur at any time. Although it is not yet confirmed whether this will be reflected in fuel surcharges, a further increase in airfare prices is certain.
Despite continuously rising airfare costs, travel market demand continues to grow. Lion Travel General Manager Lai Yi-ching observed that January-February 2026 performance has already surpassed the same period in 2025. Although war factors affect flights transiting through the Middle East, the overall order momentum remains strong. Since March, group orders have increased by about 15% year-on-year, and a clear order shift effect has emerged. Among them, Australia/New Zealand routes have grown by 40% year-on-year, with New Zealand orders extending until October; demand for US/Canada routes has also significantly increased.
The European market is also growing steadily. Lai Yi-ching pointed out that domestic airlines offer over 80 direct flights to Europe per week, which has led to an increase in demand for European tours. In contrast, Asia/Africa routes are more affected by the war, but the Asian market has benefited from the order shift effect, with Japan tours growing by about 40% and Korea tours by about 20%.
In terms of prices, rising fuel costs have gradually been reflected in tour prices. Lai Yi-ching stated that current short-haul tour price increases are controlled within NT$2,000, and long-haul tour prices have increased by about NT$4,000. It is currently reported that the second wave of fuel cost adjustments is expected to be smaller, but it may still affect prices for winter and summer family travel.
Looking ahead to the full year, Lai Yi-ching pointed out that although the Middle East situation has caused disruptions, demand in other markets has accelerated, coupled with the shift in travel demand to short-haul Asian destinations, driving an increase in flights and operational efficiency. In particular, demand for small group tours and corporate tours continues to expand, with corporate tours growing by 15% last year, accounting for 20%, and are expected to grow by 20% this year.
In addition, the low yen continues to stimulate travel demand. She stated that Lion Travel's Japan tours in April have exceeded 1,000 groups, and driven by the May 1st holiday, overall revenue continues to expand. Although rising costs compress margins, with demand support, gross profit performance may not be pessimistic. It is worth noting, Lai Yi-ching pointed out, that before the fuel price adjustment, there was already a phenomenon of early bookings and early ticket issuance in the market. However, whether the war situation will continue still makes some consumers adopt a wait-and-see attitude. (Editor: Huang Kuo-lun) 1150410
However, fare pressure is not over yet. Some industry players revealed that travel agencies have been notified that some domestic airlines' airfare costs are expected to increase again on April 15, and price hikes may occur at any time. Although it is not yet confirmed whether this will be reflected in fuel surcharges, a further increase in airfare prices is certain.
Despite continuously rising airfare costs, travel market demand continues to grow. Lion Travel General Manager Lai Yi-ching observed that January-February 2026 performance has already surpassed the same period in 2025. Although war factors affect flights transiting through the Middle East, the overall order momentum remains strong. Since March, group orders have increased by about 15% year-on-year, and a clear order shift effect has emerged. Among them, Australia/New Zealand routes have grown by 40% year-on-year, with New Zealand orders extending until October; demand for US/Canada routes has also significantly increased.
The European market is also growing steadily. Lai Yi-ching pointed out that domestic airlines offer over 80 direct flights to Europe per week, which has led to an increase in demand for European tours. In contrast, Asia/Africa routes are more affected by the war, but the Asian market has benefited from the order shift effect, with Japan tours growing by about 40% and Korea tours by about 20%.
In terms of prices, rising fuel costs have gradually been reflected in tour prices. Lai Yi-ching stated that current short-haul tour price increases are controlled within NT$2,000, and long-haul tour prices have increased by about NT$4,000. It is currently reported that the second wave of fuel cost adjustments is expected to be smaller, but it may still affect prices for winter and summer family travel.
Looking ahead to the full year, Lai Yi-ching pointed out that although the Middle East situation has caused disruptions, demand in other markets has accelerated, coupled with the shift in travel demand to short-haul Asian destinations, driving an increase in flights and operational efficiency. In particular, demand for small group tours and corporate tours continues to expand, with corporate tours growing by 15% last year, accounting for 20%, and are expected to grow by 20% this year.
In addition, the low yen continues to stimulate travel demand. She stated that Lion Travel's Japan tours in April have exceeded 1,000 groups, and driven by the May 1st holiday, overall revenue continues to expand. Although rising costs compress margins, with demand support, gross profit performance may not be pessimistic. It is worth noting, Lai Yi-ching pointed out, that before the fuel price adjustment, there was already a phenomenon of early bookings and early ticket issuance in the market. However, whether the war situation will continue still makes some consumers adopt a wait-and-see attitude. (Editor: Huang Kuo-lun) 1150410
FAQ
How do rising international oil prices affect airfare?
Rising international oil prices have led to increased airline fuel surcharges, with short-haul routes rising from US$17.5 to US$45 and long-haul routes from US$45.5 to US$117.
How was Lion Travel's business performance in January-February 2026?
Lion Travel's performance in January-February 2026 has already surpassed the same period in 2025.