Saga PLC (LON:SAGA) is forecasting a hit to its profits of up to £15mln after deciding to suspend its cruise operations until 1 May as a result of the coronavirus pandemic.
The provider of holidays and insurance to the over 50s noted up-dated travel advice from the UK government that advised people over 70 to avoid cruise travel during the outbreak, adding that cancellations for its voyages had increased in recent weeks.
READ: Saga slides as coronavirus weighs on cruise and tour businesses
As a result of the stoppage, the firm predicted pre-tax profits from its cruise business would fall by between £10mln and £15mln.
Looking ahead, Saga said the travel environment “remains uncertain” but added that the company had “significant available liquidity” and that its insurance business was “not expected to be significantly impacted by [coronavirus]”.
The group also said there were “a range of further mitigating actions” it will take to lessen the impact of the outbreak including “additional cost efficiencies and reducing discretionary spend”.