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Travel & Leisure

Top Japan travel agency JTB slashes capital to $1m in shock therapy

Move cuts tax burden to small-business level as travel slump drags on

Sensoji, a major tourist attraction in Tokyo. Travel agencies like JTB have been hit especially hard by COVID-19.   © Reuters

TOKYO -- Pandemic-hit travel agency JTB will cut its capital to 100 million yen ($949,000) from around 2.3 billion yen, Nikkei has learned, in a drastic move that transforms the Japanese industry leader into a small business for tax purposes.

Shareholders on Feb. 12 approved the capital reduction, which takes effect March 31. The freed-up capital will help absorb a big net loss forecast for the current fiscal year.

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