Saga considers possibility of cruises and tours suspensions till 2021

Saga has suspended dividend payments and started planning for a possible extended suspension of its cruise and tour operations up to January next year.

In a trading update this morning, the over 50s holiday specialist said it has started planning for a number of scenarios due to the impact of the coronavirus pandemic on holiday plans.

“Given the significant potential impact of Covid-19 on the travel industry, the group has considered scenarios for extended suspension of cruise and tour operations, including full cancellation of all travel departures over six months, followed by a slow recovery.

“The Group has also considered a further, more severe scenario that assumes the cessation of cruise and holidays trading until January 2021,” it said.

It said that disruption caused by the coronavirus at shipyards might also delay deliver of its second new ship, Spirit of Adventure, which had been due to enter service this August.

MMP