Home Business News Saga shares sink over high ‘cancellations’ due to coronavirus fears

Saga shares sink over high ‘cancellations’ due to coronavirus fears

by LLB Reporter
5th Mar 20 3:14 pm

The over 50s travel company Saga has seen shares drop by 8% after their cruise ship arm reported “higher level of cancellations for departures in the near-term and more generally a lower level of bookings for departures further out.”

The division was further hit with a 20% slump in forward passenger bookings for this year and 2021.

The group said, “The evolution of Covid-19 and the impact this will have on full year earnings for 2020/21 cannot be predicted with any certainty at the current time.

“While our travel business will be impacted, the group expects the performance and cash generation of the Insurance business to be largely unaffected.”

Saga is one of many travel firms being hit by the virus outbreak, on Thursday flybe collapsed blaming coronavirus.

William Ryder, equity analyst at Hargreaves Lansdown, said: “The shares are down over 45% since February 20, and today’s update just confirms the group is facing problems.

“The outbreak has hit most companies in the travel and leisure sector, but Saga wasn’t in a great place to begin with.”

The broadcaster ITV announced on Thursday they are forecasting a slump in advertising revenues up to 10% in April due to the coronavirus outbreak as travel companies are pulling spend.

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