SSP Group plc (LON:SSPG) said “demand may well remain subdued” in the winter months although sales have improved since the start of the pandemic.
Current weekly sales are running at 76% below last year, better than third-quarter sales which were 95% lower in April and May and 90% lower in June.
READ: SSP Group mulls 5,000 job cuts as pandemic batters travel sector
Continental Europe benefitted from the stronger performance of the rail business, notably in Germany and France, and some recovery in regional air travel over the summer, outperforming the UK, North America and the rest of the world.
In the UK, there has also been a recovery in the air sector over the summer from leisure customers while the rail sector remained very weak, while international air travel remains under pressure in all other regions.
The operator of food outlets in train stations and airports has reopened just over a third of its units, or 1,100, which is ahead of expectations.
The FTSE 250-listed group, owner of brands such as Upper Crust and Ritazza, confirmed the forecast for the second half of the year, with revenue tipped to slump by 86% or £1.3bn compared to 2019.
Underlying and operating losses are expected to fall in the middle of the £120-190mln and £180-250mln ranges previously set out,
The cash burn is expected to be £250-270mln, leaving liquidity at the end of the financial year to September 30 at £480-500mln.
"Our estimates are for SSP to be broadly underlying earnings (EBITDA) breakeven in financial year 2021, with after a loss in the first half, reaching EBITDA positive in the second half," analysts at Shore Capital commented.
"We continue to see a roadmap to reaching profitability in the second half next year, although recent news flow may moderate the pace of recovery in the first half."
Shares rose 5% to 189.6p on Wednesday at the opening bell.
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