BUSINESS NEWS
Saga seeks ocean cruise partner to ‘accelerate growth’
Saga confirmed it is seeking an ocean cruise partner as it reported a pre-tax loss of £129 million for the 12 months to the end of January. The group reported a trading
profit of £116 million across its ocean and river cruise, travel and insurance businesses, with revenue up 12% year on year at £741 million. Saga’s losses were down by more
Mike Hazell
that would support our growth ambitions. With the current business nearing optimum capacity in ocean cruise, we’re evaluating routes to accelerate growth.” He noted: “Ocean cruise had
than half on 2022-23 and the group reported a 10% reduction in debt year on year to £637 million. Chief executive Mike Hazell said:
“We’re accelerating our partnership strategy, exploring opportunities
an outstanding year, and we far exceeded our initial earnings targets, while river cruise and travel both returned to profit.” Saga reported “exceptionally strong” ocean cruise bookings for 2024-25. Hazell attributed the
£129 million loss to a £105 million impairment on goodwill in Saga’s insurance business and £40 million in restructuring costs.
EasyJet cuts winter losses as operator profits double
Ian Taylor
EasyJet reported a pre-tax loss of £350 million for the six months to the end of March, a £50 million improvement on last year in the traditionally loss-making winter season. The carrier recorded an 8% increase
in passengers year on year in the three months to March, with a 9% rise in the yield on fares and 10% rise in ancillary sales revenue – in line with an 8% increase in capacity over the half year. Group revenue for the half year was up 22% on 2022-23 to £3.27 billion. However, half-year pre-tax
profits at easyJet holidays more than doubled year on year to £31 million, with the tour operator on course to add 35% more customers by the end of September than in 2023. The improvement was due in part
to Easter this year falling in March, when the carrier noted “demand was particularly strong”.
travelweekly.co.uk EasyJet chief executive Johan
Lundgren attributed the improved figures to “targeted capacity growth alongside productivity and utilisation benefits . . . despite headwinds from fuel costs and the conflict in the Middle East which resulted in a direct impact of £40 million”. That impact fell mainly in
October and November, when the airline reported “pricing was very strong” at the start of the period, with October revenue per seat up 12% year on year. However, the start of the conflict on October 7 “resulted in a temporary slowdown in flight bookings for the wider industry” before “bookings recovered strongly from late November”. The carrier suspended operations
to Israel last week for the duration of the summer. Asked whether heightened
tension in the region could impact demand for Turkey or Egypt, Lundgren said: “It’s an evolving
EasyJet’s capacity in peak summer will be 7% up this year
situation. But we’ve seen nothing in terms of impact into the region.” EasyJet will operate an additional
8% capacity on last spring during April to June and 7% more year on year in July to September. It noted “an increase in volume
and pricing” for the summer. However, the airline lost almost £9 on every seat sold over the six months of the winter season – reporting total airline revenue per seat of £69.87 in the period, up 5% year on year, but total costs of £78.88, up 2%.
25 APRIL 2024
WTTC urges sector to ‘embrace AI to shape the future’
The World Travel & Tourism Council (WTTC) urged the industry “to embrace AI as a strategic priority” as it published two reports on AI during the UN General Assembly in New York last week. WTTC president and chief
executive Julia Simpson hailed AI as “a catalyst for positive change” at the launch of the reports, issued jointly with Microsoft – making a series of four now available. Simpson said the reports,
entitled ‘Responsible AI: Overview of AI Risks, Safety & Governance’ and ‘AI: Global Strategies, Policies & Regulations’, underscore the need to prioritise safety and responsible adoption. She noted “AI is already being
used across our sector” but said a shortage of AI-skilled workers risks holding travel and tourism back. Simpson suggested: “AI is not
just a technological advancement, it is a strategic tool that can personalise customer experiences, drive sustainable improvements and shape the future of tourism.” Microsoft travel, transport
and logistics industry managing director Julie Shainock said: “We’re seeing AI embraced across the travel ecosystem, but we’re only at the beginning of the journey.” The reports are available at
researchhub.wttc.org
Julia Simpson 63
PICTURE: Airbus
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