Saga hails ‘strong start’ to year for cruise and travel divisions

Saga has reported a strong start to the year for its travel and cruise businesses.

The over-50s group said it traded “in line with expectations” in the first four months of the year and “remains on track” to deliver its full year guidance.

Ahead of today’s annual general meeting, the company said: “Travel continues to trade strongly, with cruise performing ahead of expectations and a resilient customer base underpinning bookings in holidays.”

Saga’s two ship ocean cruise arm had a “strong start” to the year, with revenue for the first half expected to be ahead of the same time in 2025.

“We have a high level of confidence when looking ahead to the full year and beyond, with customers typically booking well in advance, and commodity and foreign exchange risk now fully hedged to the end of 2027,” the company noted.

River cruise also began the year well, with revenue for the first half again expected to grow when compared with the prior year, according to the group. 

First half revenue and passenger numbers for Saga’s tour operations are both expected to be ahead of the previous year.

“For the full year, based on current booking levels, we expect revenue to be marginally ahead of the same point last year, albeit with passenger numbers potentially slightly behind and a higher proportion of short-haul holidays as a result of the conflict in the Middle East,” the company said.

Net debt continues to reduce, standing at £464.7 million at  May 31, £104.8 million lower than the £569.5 million at the same period last year.

Group chief executive Mike Hazell said: "Saga has made a strong start to the year, building on the significant growth we achieved last year.

“Our momentum in travel has continued, demonstrating the resilience of our customers and our diverse offering, despite the current geopolitical uncertainty. 

"Looking ahead, we are focussed on continuing to grow our travel businesses and completing the transition to our new Insurance model. We remain on track to deliver our full year guidance and continue to make clear progress towards our medium-term targets of at least £100 million underlying Profit before tax by January 2030."

Saga’s interim results for the six months to July 31 are due to be released on September 30.