eLong Inc, an online travel service provider in China, said its net loss for the second quarter of 2007 widened to 1.8 mln yuan from a loss of 781,000 yuan recorded in the previous quarter, and fell further from a net income of 10.2 mln yuan a year earlier.

The Nasdaq-listed company said, however, that the comparative second quarter of 2006 would have shown a net loss of 0.09 mln yuan if not for the inclusion of other income of 8.5 mln yuan related to interest income and unrealized exchange loss and a gain of 2.6 mln yuan on the sale of discontinued operations.

For the first half of 2007, the company posted a net loss of 2.6 mln yuan, compared with a loss of 1.96 mln yuan in the same period last year.

Total revenue for the second quarter this year stood at 78.4 mln yuan, against 65.3 mln in the previous quarter and 66.8 mln yuan a year ago.

Revenue for the first half reached 143.7 mln yuan, compared with 120.25 mln a year earlier.

Travel revenues increased 16 pct from a year earlier to 75.4 mln yuan.

Hotel commissions stood at 60.2 mln yuan, or 79.8 pct of travel revenues, up from 53.75 mln yuan in the previous year.

Air ticketing comprised 18.4 pct of travel revenues, or 13.85 mln yuan, up from 9.64 mln yuan.

'We have begun a comprehensive turnaround program to improve the company's execution,'' said Henrik Kjellberg, chairman and interim CEO of eLong (nasdaq: LONG - news - people ).

Kjellberg said that the company is making structural improvements to its hotel and air products, customer service and management.

eLong said it expects total revenues for the third quarter to be within the range of 79-87 mln yuan, an increase of 6-17 pct over the corresponding period last year.