Companies are rethinking their emergency measures to deal with swine flu so they can react more flexibly as the virus hits epidemic stage.

With the number of people believed to be infected with the new H1N1 strain increases nationwide, makers of masks and other flu-related products are maintaining full output capacity during what would normally be the off-season. Airlines are meanwhile bracing for travel demand to be further pounded by the flu scare.

While no major cancellations have yet been reported, the continued spread of swine flu since the first case in Japan was reported in May is expected to weigh heavily on the earnings of loss-making airlines ahead of the fall tourist season.