Lion Travel’s Q3 performance was bolstered by a rebound in outbound tourism and high demand for summer vacations and corporate incentive travel, resulting in revenue recovery to 85% of pre-pandemic levels. Japan and Europe were standout destinations, with European line revenue rebounding to 90% of pre-pandemic levels.
Benefiting from prudent cost control measures and a favorable currency exchange rate, Lion Travel also achieved high gross and net profit margins. The company’s decision to forgo a cash capital increase in its subsidiary, Lutianxia International United Travel Service, is expected to yield positive non-industry income recognition in Q4, contributing to an estimated per-share earnings of over 5.6 yuan in the same period.
