(Yicai Global) June 8 -- Trip.Com Group’s shares climbed after the online travel agency said it returned to profit in the first quarter of the year thanks to the recovery in domestic tourism after China reopened following the Covid-19 pandemic.

Trip.Com [HKG: 9961] ended 5.5 percent higher at HKD282.40 (USD36.01) in Hong Kong today.

Net profit was CNY3.4 billion (USD491 million) in the three months ended March 31, versus a net loss of CNY989 million (USD138.6 million) a year earlier, the Shanghai-based company’s trading report showed yesterday. Revenue soared 124 percent to CNY9.2 billion, exceeding the pre-pandemic level of 2019 by CNY1 billion.

“During the first quarter, there has been an upsurge in both domestic and outbound travel activities in China,” Executive Chairman James Liang said. “We are encouraged to see the world becoming more open and connected at the start of 2023.”

Over the past three years, Trip.Com focused on strengthening its supply chain, content offerings, and service quality to better tap the pent-up demand for travel and establish a solid foundation for sustainable growth, Chief Executive Officer Jane Sun.

“We are delighted to see that our first-quarter results have demonstrated the long-term growth prospects of the travel industry and the strong execution of our team,” she said.

Revenue from accommodation bookings jumped 140 percent to CNY3.5 billion in the quarter, while income from travel bookings and package tours surged 150 percent and 211 percent to CNY4.2 billion and CNY386 million, respectively.

Domestic hotel reservations more than doubled, with same-city staycations soaring 150 percent from the same period of 2019.

Outbound hotel and air reservations recovered to more than 40 percent of the pre-pandemic level in 2019, despite only a 15 percent recovery in the overall outbound aviation market.

Air ticket bookings on Trip.Com's global online platforms grew more than three-fold in the first quarter from a year earlier and over two-fold compared with the same period in 2019.

Editor: Futura Costaglione