The over-50s specialist on Wednesday (22 September) posted a pre-tax half-year profit (six months to 31 July) of £700,000, up from a loss of £55.5 million over the same period last year.

However, the group’s travel division’s half-year loss grew from £34.2 million to £51.2 million, with both its touring and cruise arms largely unable to operate due to the pandemic.

Saga resumed cruise operations on 27 June with Spirit of Discovery; second new-build Spirit of Adventure enter service a month later, departing on its inaugural cruise on 26 July.

Its tour operations, though, were limited during H1 to a "small number" of UK-based holidays in June with many destinations still off-limits owing to travel restrictions. Some international departures and river cruises have since been able to resume, with a "gradual and phased" return to service expected to the end of the year.

As a result, cruise revenue more than halved from £16.3 million in the six months to 31 July 2020 to £8 million, while touring revenue collapsed from £33 million to just £2 million.

The travel division’s £51.2 million total underlying loss before tax, meanwhile, was split approximately 70:30, with cruising accounting for £35.4 million and touring £15.8 million.

Cruise load factor, based on current bookings as of 11 September, stands at 70% for 2021/22, and 59% for 2022/23, up – said Saga – on where they were at the same stage pre-pandemic. Revenue from 2021/22 departures stands at £85.5 million and £130.3 million for 2022/23.

"Demand is very strong for 2022/23 departures and ahead of the same point two years ago, with revenue and passenger days ahead by 58% and 39% respectively," said the group.

Saga’s tour operator revenue, meanwhile, comprising that of Saga Holidays and Titan Travel, comes to £17.8 million for 2021/22 departures and £108.7 million for 2022/23.

"Bookings for 2022/23 [touring] departures are ahead of the same point two years ago by 18% and 10% for revenue and passengers respectively," said Saga. "While bookings for 2022/23 are ahead of pre-pandemic levels, there remains some uncertainty within the travel industry surrounding the longer-term impact of Covid-19."

More than a third (37%) of cruise revenue for 2021/22 comes from customers choosing to rebook cruises cancelled in 2020, with Saga’s figures also excluding those customers who have indicated they intend to rebook but are yet to do so.

Some 44% of 2021/22 tour operator revenue comes from customers who have rebooked holidays cancelled in 2020.

The group said on Wednesday it managed to cut monthly cash burn for the six months to 31 July to £5.9 million, below previous guidance of £7 million to £9 million a month.

Euan Sutherland, Saga group chief executive, said he was encouraged by the "strong pipeline of future bookings", adding that following a "successful" restart of travel operations, the group was now working towards a full return to service, albeit while warning the group "remained mindful of future potential volatility relating to Covid-19".

Chair, Sir Roger de Haan, added: "We are encouraged by the fact that confidence is returning in overseas travel for next year and that the government is continuing to relax the Covid-19 rules relating to travel."

He said a new £250 million bond, issued in July and due to mature in 2026, would set the firm "in good stead for the future" and would be used to repay debt, buy back a proportion of an existing bond and "significantly improve" the group’s cash position.