UK travel and insurance group Saga has raised its annual profit outlook after a strong year for its cruise and holiday businesses, buoyed by robust demand from over-50s travellers.
The London-listed company said it now expects underlying profit for the year to come in above previous forecasts, driven by steady growth across its travel division and particularly strong bookings for both ocean and river cruises.
Investors welcomed the upbeat update. Saga shares jumped 8.6% in early trading on Thursday to 471.5 pence, making the stock the top performer on the FTSE Mid Cap index.
Saga said the global recovery in travel, combined with a significant reduction in group debt, has helped strengthen profitability in the 2025–26 financial year.
Chief executive Mike Hazell pointed to continued momentum across the business. “Demand for our ocean and river cruises continued to grow, and we saw a material increase in the number of customers taking our hotel and touring holidays,” he said.
The company’s holiday division is now expected to post underlying profit before tax ahead of last year’s result. Saga attributed this improvement to higher passenger numbers and early benefits from its decision to bring its cruise and holiday operations under a single leadership structure.
Beyond travel, Saga also reported a stronger-than-expected performance from its insurance broking arm. Policy sales rose steadily over the year, supported by the launch of its long-term partnership with Belgian insurer Ageas, which came into effect late last year.
Together, the updates underline Saga’s improving financial position as demand for leisure travel among older customers continues to rebound strongly. Photo by A cruise ship entering the Mouth of the Severn by Robin Drayton, Wikimedia commons.