Lion Travel, Wu Fu Travel Q1 Profits High, Oil Price Hike Doesn't Dampen Travel Enthusiasm

(Central News Agency reporter Chiang Ming-an, Taipei, May 8) Affected by the US-Iran war, the tourism market saw a shift in demand starting from March. Travel agencies maintained stable and high first-quarter profits. Lion Travel's earnings per share (EPS) reached NT$4.17, marking its second-highest Q1 profit in history; Wu Fu Travel's Q1 EPS was NT$3.44, also a single-quarter second-highest. Industry analysts noted that summer holiday bookings surged starting in April, indicating that despite rising oil prices, travel enthusiasm for the second quarter remains undiminished.

Lion Travel's consolidated revenue for the first quarter was NT$8.13 billion, with net profit attributable to owners' equity of NT$388 million, and EPS of NT$4.17, the second-highest Q1 record in its history.

Lion Travel analyzed that although Q1 profits for European and Asia-Africa routes were affected by the outbreak of the US-Iran war, a shift in demand occurred from March. Benefiting from travel demand during the Lunar New Year, winter vacation, February 28th, and Tomb-Sweeping Day long holidays, Q1 revenue and profits continued to remain high. Buying interest for Japan and Korea theme parks and Southeast Asian resort itineraries remained strong.

In response to factors like rising airfare prices, Lion Travel observed a trend of travelers planning long holidays earlier, with long-haul super early bird products like "European summer getaways" and "Australia/New Zealand New Year's Eve" emerging prominently. Additionally, increasing flight routes from central Taiwan have boosted travel demand.

Looking ahead, Lion Travel stated that summer holiday bookings surged from April. Although the US-Iran conflict led to rising oil prices in Q2, travel enthusiasm remains undiminished. Compared to the same period last year, bookings for Japan, Korea, Australia, and New Zealand increased by nearly 30% year-on-year; visibility for Northern European aurora borealis tours has extended to March 2027. Travel demand has not decreased, with travelers shifting towards Australia/New Zealand, Japan, and Korea.

Wu Fu Travel's consolidated revenue for the first quarter was NT$2.541 billion, a single-quarter record high, representing a 13.46% year-on-year growth. Affected by exchange rate fluctuations, non-operating income recognized exchange valuation losses, resulting in a net profit attributable to the parent company of NT$116 million. Despite a 19.81% year-on-year decrease in net profit after tax due to non-operating factors, EPS of NT$3.44 still marked a single-quarter second-highest.

Phoenix Travel announced its consolidated revenue for the first quarter was approximately NT$714 million, a 0.3% year-on-year decrease; consolidated non-operating income and expenditure net income was NT$13.55 million, a 150.7% year-on-year increase; net profit after tax attributable to owners of the parent company was NT$52.16 million, a 24.6% year-on-year increase, with EPS of NT$0.62, a 26.5% year-on-year increase.

Phoenix Travel stated that Q1 coincided with the winter vacation and Lunar New Year holidays, and travel demand remained stable, leading to revenue being largely flat compared to the same period last year. With the injection of non-operating income, both profit and EPS showed double-digit growth. Moving forward, the company will continue to deepen its layout of high-priced travel products, strengthening the promotion of European river cruises, Arctic and Antarctic cruises, and aurora borealis tours.

Phoenix pointed out that the outbreak of conflict in the Middle East at the end of February briefly affected some routes passing through the region, leading to the cancellation or postponement of some group tours in March. At the same time, the conflict drove up oil prices, further increasing travel-related costs, which temporarily affected some travelers' willingness to spend. However, the market's atmosphere of unease is gradually fading. (Editor: Yang Lan-xuan) 1150508