Saga cancels all cruises over coronavirus fears

The move follows updated advice from the Government advising people aged 70 and over and those with pre-existing health conditions against going on cruises.

Before the Covid-19 outbreak, Saga said cruises were proving very popular with Yorkshire customers as the firm chauffeurs passengers from their home to the departure port at Dover or Southampton.

The firm said that while cancellations have increased in recent weeks, demand for cruises is very positive, with bookings at around 80 per centof its sales target for the year.

The company said cruise customers who were due to travel between now and May 1 will be offered a full refund or credit for a future departure.

The move follows similar announcements from US-based peer Princess Cruises, the operator of two ocean liners that were quarantined after they became hotbeds for infections, and Finland’s Viking Line.

Carnival-owned Princess Cruises has cancelled all trips for its 18 vessels for the next two months.

Meanwhile, Sir Richard Branson announced that the inaugural season of his new Virgin Voyages cruise line is also being postponed due to the outbreak.

Saga said it expects the suspension of its cruise operations for the next six weeks to reduce profit in the division by between £10m and £15m.

The firm said that, while the travel environment is uncertain, it has significant liquidity available, including a £100m credit facility, £33m in cash at the end of February and strong cash generation in its insurance business.

It said it does not expect the outbreak of coronavirus to hit its insurance arm, which has reported a good start to the current financial year.

Last week, Saga warned coronavirus had affected its travel business due to cancellations and falling demand.

It has been a testing start to life at the business for Euan Sutherland, who joined the company as chief executive from Superdry in January.

The travel industry is grappling with mass cancellations since the outbreak, which has upended normal life in dozens of countries and led to the cancellation of thousands of flights, holidays and business trips.

Saga said: “The health and safety of customers and colleagues is our number one priority.

“We have, therefore, made the decision to temporarily suspend operations of our Cruises until May 1, 2020.”

The company, which operates ocean and river cruises, said it would seek additional cost savings and cut discretionary spending to offset the impact of the suspension.