The collapse of Thomas Cook cost Saga about £4 million in the second half of 2019.
The one-off costs were disclosed today in a trading update by the over-50s travel and insurance group for the six months to January 27.
Saga revealed that its tour operations revenues are expected to be 5% down year-on-year, in line with trading at the half year point up to July last year.
No mention was made of speculation suggesting the company is considering the sale of escorted tours specialist Titan Travel.
Referring to its tour operations, Saga said: “We are seeing a much more resilient picture in those parts of the business where our customer proposition is truly differentiated, notably in escorted tours.
“The administration of Thomas Cook in the second half has resulted in approximately £4 million of one-off costs which will be taken below underlying PBT [profit before tax].”
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Saga said it was building on the “excellent progress” in cruise over the first half of the year.
The first six months of operation of newbuild Spirit of Discovery was described as successful with “very positive” customer feedback.
Saga expects the new ship to achieve earnings [ebitda] of more than £20 million for the second half.
The construction of sister ship Spirit of Adventure is on track and remains on time and on budget for delivery in August.
Saga Cruises’ forward bookings for 2020-21 are at 76% of full year target levels and “we remain fully on track with our expectations for £40 million of ebitda per new ship,” the company added.
The group expects full year underlying pre-tax profit to be in line with its previous guidance “against a backdrop of a challenging external environment in insurance and travel”.
Saga added: “There remains much to do to continue to improve our capabilities in all areas of the business and to respond to changing customer behaviours, across both insurance and travel.”
Newly-appointed chief executive Euan Sutherland said: “Although Saga continues to face challenging markets in insurance and travel, we have a clear focus on improving performance and cost efficiencies within the group, while strengthening our financial position and reducing debt.”