Saga Group has upgraded profit expectations for the current financial year after its holidays and cruise businesses delivered a better-than-expected performance in the last six months.
In a trading update for the period August 2025 to late January 2026, the over-50s specialist said it expects underlying profit before tax to be ahead of last year’s results and its previous half-year guidance, driven largely by its travel brands.
Load factor for ocean cruises is at 93%, for the period, up two percentage points year-on-year, with per-diem (daily) revenue up 10%, to £394.
Saga’s river cruise operation also performed well, following the launch of Spirit of the Moselle. Load factors held steady at 89%, with per-diem revenue up 7% to £349.
Saga expects underlying profit before tax for its holidays division to exceed last year. Booked revenue is up 13%, and passenger numbers are up 11%, following the strategic move earlier in the year to consolidate all travel businesses under a single management team.
Forward bookings are positive for 2026/27, with Saga’s ocean cruise programme 70% booked, three percentage points ahead of the same time last year, with per-diem revenue at £445, up 13%. River cruise bookings are also ahead, with load factors at 59% and improved yields.
Meanwhile, Saga Holidays has £132m of revenue already booked for the next financial year, 5% ahead year-on-year.
Saga Group CEO Mike Hazell said: “This has been a period in which we traded ahead of expectations, particularly in Travel, delivered excellent financial results and continued to implement our strategic plans.
“Demand for our Ocean and River Cruises continued to grow and we saw a material increase in the number of customers taking our hotel and touring holidays.”
He said trading in Saga’s insurance division has also been ‘strong and ahead of expectations’.
“The Group now expects to report an underlying profit before tax ahead of the prior year, and an improvement on the guidance we gave at the half year.
“Alongside this, we have made significant strategic progress. We have simplified our Travel business under one management team, creating a single, more efficient and customer centric operation.
“As we look ahead, we expect the momentum to continue to build in our Cruise and Holidays businesses.”
The Group’s preliminary results for the year ending 31 January 2026 are scheduled for Wednesday 15 April 2026.
