Saga shares hit six-year high as booming demand for cruises boosts profits
Saga shares have hit a six-year high as the over-60s specialist shrugged off consumer gloom around the Middle East war and cruised back into the black. The boss of the travel and insurance firm said it was protected against any downturn in consumer confidence due to its ‘older customer base that are more affluent and resilient than the typical UK demographic’.And investors were cheered as the company swung to a pre-tax profit of £2.1million for the year to 31 January, compared to a loss of £160.2million the year before - in a sign that its turnaround has succeeded.Shares were up 10.5 per cent in morning trading on Wednesday - contributing to gains of nearly 66 per cent in 2026 so far.Sales rose 12 per cent to £660 million thanks to booming demand for its ocean cruises, which saw prices rise 10 per cent to an average of £394 a day. The business said it has not been impacted by disruption to travel plans to the Middle EastChief executive Mike Hazell said its customers ‘have on their hands and money to spend’ and so the business is protected from the squeeze on living costs.There have been concerns that consumers will rein in spending as energy and grocery bills look set to surge this year.But Hazell said his ‘resilient’ customer base tends to travel later in the year, with the group’s peak season in September and October.‘So whilst there'll be other travel businesses out there worrying about the current Middle East situation and the impact it will have on people travelling this summer., actually, for us, our customers will come later in the year,’ he said.Its ships cabins are 79 per cent full already for the current year, with a per day cost of £447.Holidaymakers’ travel plans have been disrupted due to the conflict, with many cancelling plans to travel to hotspots in the Gulf, including Dubai.But Saga said it still believes in ‘driving continued success’ through its travel arm, although it is ‘mindful of the current uncertainty’.The group said it has ‘mindful exposure to the region’ with no cruises and ‘only limited’ holiday bookings to Egypt, Cyprus and Turkey.And it is 'well hedged' for current foreign exchange and oil commodity risks for the next two years, protecting it against price shocks, Hazell said.The group said it is confident it will make at least £100 million in annual underlying profit before tax by 2030.It said its best-selling cruise is one that takes passengers around the ports in the UK - and the strong demand has inspired a new British historical city offering in its hotels business.The group is trialling city breaks, including in Chichester and Canterbury, offering customers the chance to stay in university halls and take guided tours around historical landmarks.Saga sold its insurance underwriting business to Ageas in July 2025, which has helped streamline the business.Hazell added: ‘This has been a transformational year for Saga. The restructuring of our Insurance business, and the partnership with Ageas, derisks and simplifies our operating model, creating a more stable platform for growth.’Garry White, chief investment commentator at Charles Stanley, part of Raymond James Wealth Management, said the results ‘show a business continuing to stabilise after a prolonged period of restructuring, with solid demand in its travel division helping to offset ongoing pressures elsewhere.’‘Investors will focus on Saga’s ability to sustain cash generation and continue reducing debt as it seeks to build on the recovery in its new financial year.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Saga shares hit six-year high as booming demand for cruises boosts profits
