(Reuters) -Britain’s Saga said on Wednesday demand for its tour packages remained below pre-pandemic levels as customers were cautious of travelling abroad, and the crisis in Ukraine may also reduce travel bookings in the short term.
Shares of the company fell 7% in morning trade.
The holidays group, which provides products and services tailored for customers over the age of 50 in the UK, said its cruise bookings for 2022/23, however, were higher than two years ago due to pent-up demand. The company resumed cruises in June after a more than year-long hiatus.
The travel industry, which had been battered by the COVID-19 pandemic, is starting to recover, although risks of new variants of the coronavirus and the war in Europe still pose a threat to the pace of recovery.
“Looking to the future, I am both confident and excited about the opportunities ahead of us as we emerge stronger from the pandemic than we went in, whilst remaining mindful of the current challenging external environment,” Chief Executive Officer Euan Sutherland said.
Saga said its tour bookings for 2022/23 were 132 million pounds ($175.02 million) as at March 20, 30% below pre-pandemic levels.
The company, which also sells insurance to over 50-year olds, said it expects the new pricing rules levied by British regulators to reduce its motor and home insurance profits. Last year, it benefited from lower motor insurance payouts.
The Kent-based company reported a pre-tax loss of 23.5 million pounds for the year ended Jan. 31, compared with a 61.2 million pounds loss a year earlier.
($1 = 0.7542 pounds)
(Reporting by Sinchita Mitra in Bengaluru; editing by Uttaresh.V)
