Saga halts all cruises amid coronavirus fears

Saga has announced it has suspended operations of its cruise business as a result of the ongoing coronavirus pandemic.

The group, which specialises in financial products and holidays for people over 50, has temporarily suspended its cruises until May 1.

The news comes as the government has issued updated travel advice in response to the growing coronavirus outbreak, advising people aged 70 and over and those with pre-existing health conditions against cruise ship travel.

Customers due to travel in the next six weeks will be contacted by the firm to arrange a refund or credit for a future trip.

In a statement this morning, the group explained: “The health and safety of customers and colleagues is our number one priority. We have, therefore, made the decision to temporarily suspend operations of our Cruises until 1 May 2020.

“It is estimated that a cessation of cruise trading for the next six weeks will reduce Cruise profit before tax by between £10m and £15m.

Saga continued: “While the travel environment remains uncertain, the group continues to have significant available liquidity, underpinned by a £100m undrawn revolving credit facility, £33m of cash at the end of February and the strong cash generation of the insurance business.

“As previously noted, the insurance business is not expected to be significantly impacted by COVID-19 and has had a good start to the current financial year.”

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