Saga credits consolidation for driving first-half profit

A strong first half trading performance ahead of expectations helped shift Saga Group back into profit in the first six months of the year.

 

The over-50s specialist reported strong forward travel bookings for the second half of 2025.

 

“In both ocean and river cruise, and in holidays, we anticipate a further improvement in profitability, driven by higher passenger numbers,” Saga said.

 

“In travel, we have strong forward bookings for the second half of the year.”

 

Consolidation of the company’s travel leadership team in March delivered “a very strong trading performance, improved efficiency and provided an excellent customer experience across our product range”.

 

Saga’s two-ship ocean cruise busies achieved a 23% year on year rise in pre-tax profits to £41.6 million.

 

“Demand for our unique boutique ocean cruises is stronger than ever and we have seen an excellent start to the year, continuing the momentum generated in previous years. Our focus is always on enhancing the quality, value and service we offer our customers,” the company said.

 

“Having combined the leadership and operations of our previously separate cruise and holidays businesses, we are achieving both improved efficiency and a stronger, more consistent delivery across our full range of holidays."

 

The river cruise arm reported a 34% rise in pre-tax profits to £3.9 million in the period.

 

Saga’s tour operations achieved a pre-tax profit of £3.2 million against £300,000 in there first half of last year as passenger numbers grew by 13% to 27,800.

Underlying tour operating revenue was up by 14% to £89.6 million. 

 

Group chief executive Mike Hazell said: "Our travel business has performed particularly strongly. 

 

“Demand for our exceptional ocean and river cruise holidays continued to grow and we have seen a material increase in the number of customers enjoying our hotel and touring holidays. 

 

“In July, we launched our newest river cruise ship, Spirit of the Moselle, which is already trading well and proving to be very popular with our customers - a clear demonstration of the growth opportunities we have in river cruising.

 

“Our performance in the first half was a significant step forward towards meeting our targets and it has further reinforced my confidence in the future.”

 

Saga reiterated an ambition to deliver underlying profitability of at least £100 million by January 2030.

 

The group achieved a pre-tax profit of £3.7 million in the six months to July 31 compared with a loss of almost £117 million in the same period last year based on a 7% year on year rise in revenue to £320.5 million.

 

Chairman Roger De Hann said: “In March this year, we combined the leadership and operations of our two travel businesses, cruise and holidays. 

 

“The aim was to create a single travel business that delivered consistently high-quality customer experiences, tailored for older people, with an effective and efficient operating model. The early results of this change have been very positive. 

 

“Demand for our ocean and river cruise holidays has continued to grow, as have our customer satisfaction scores. 

 

“In July we launched our newest purpose-built River Cruise ship, Spirit of the Moselle. It is an excellent addition to our fleet and the demand it is generating demonstrates the great growth potential we have in that part of our business.

 

“We have also seen strong demand for our hotel and touring holidays, which has led to a significant growth in customer numbers. Alongside this, we have improved our customer satisfaction scores. 

 

“Saga, the company my mother and father started, has a long history of specialising in taking older people on holiday and working hard to do it well. I am delighted that after almost 75 years, our strength in travel remains as important to us as it does to our customers.”