Coronavirus: Saga forecasts hit for travel arm

The over-50s specialist said its tour operator and cruise arms have experienced less demand and a rise in cancellations because of the infection, which has killed more than 3,000 people around the world.

However, the group stressed forward cruise bookings remain strong after achieving 80% of its full-year revenue target by 29 February, with the remaining 20% weighted towards Q3 and Q4.

Additionally, its two most recent departures were 80% full.

Its tour operation, however, has seen a 20% fall in forward bookings for 2020/21 compared with last year, with the coming weeks most affected.

“The evolution of Covid-19 and the impact this will have on full-year earnings for 2020/21 cannot be predicted with any certainty at the current time,” said Saga in a statement.

“While our travel business will be impacted, the group expects the performance and cash generation of the insurance business to be largely unaffected.”