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Upper Crust owner SSP flags lower annual operating profit as US travel weakens - Finance news and analysis from Global Banking & Finance Review
Finance

Upper Crust owner SSP flags lower annual operating profit as US travel weakens

Published by Global Banking & Finance Review

Posted on October 9, 2026

2 min read

· Last updated: October 9, 2026

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SSP Group Sees Lower Annual Operating Profit as US Travel Declines

SSP Group's Financial Performance and Market Influences

Profit Forecast and Market Reaction

Oct 9 (Reuters) - Upper Crust chain owner SSP Group on Friday forecast annual operating profit slightly below its previous expectations, as subdued summer travel in North America outweighed growth in the UK.

Shares of the company fell 5% in early trading.

Impact of Global Events on SSP Group

Middle East Conflict and Air Travel

The Middle East conflict and its impact on air travel and airline capacity have weighed on the company, which operates food and beverage outlets at airports and train stations.

US Travel Trends and Airline Strategies

While travel demand in the US has remained resilient among wealthier tourists, budget-conscious customers have cut back on vacation plans as airlines hike ticket prices to mitigate the impact of elevated fuel costs.

American Airlines, United Airlines and Southwest Airlines have also scaled back on flights to offset higher fuel prices.

Financial Expectations and Analyst Insights

Operating Profit Projections

The company said it expects annual operating profit of about £230 million ($304.34 million), slightly below company-compiled analyst expectations of £239 million, as passenger numbers in the world's largest travel market remained subdued during the peak summer period.

Analyst Commentary

RBC analysts said that higher jet fuel prices may weigh on near-term travel demand in the region.

Regional Performance Overview

UK and Ireland Growth

Resilient demand in the UK and Ireland provided a boost, with fourth-quarter like-for-like sales rising 9%, compared with 2% growth in North America.

CEO Statement and Portfolio Strength

"Despite the significant impact of the Middle East conflict on passenger volumes in APAC & EEME, the strength and diversification of our portfolio leaves us well-positioned to deliver group earnings per share for the year in line with current market expectations," CEO Patrick Coveney said.

Passenger Volumes in Key Markets

Gulf Markets Recovery

Passenger volumes in the Gulf markets have also rebounded quarter-on-quarter to now trade at 90% of prior-year levels, SSP said.

Eastern Mediterranean, Asia Pacific, and Indian Regions

However, traffic in the surrounding Eastern Mediterranean, Asia Pacific and Indian regions remains tepid.

(Reporting by Simone Lobo in Bengaluru; Editing by Sherry Jacob-Phillips)

Key Takeaways

  • SSP trims FY26 operating profit guidance to about £230 million versus analyst consensus of £239 million (sspuat.botbase.co.uk)
  • Weaker U.S. summer travel weighed on performance despite resilient demand from wealthier tourists; airlines have curtailed capacity amid elevated jet fuel prices and Middle East conflict disruptions (apnews.com)
  • UK and Ireland remain bright spots: Q4 like‑for‑like sales up ~9%, versus ~2% in North America, helping offset regional headwinds (investegate.co.uk)

References

Frequently Asked Questions

How did Middle East conflict impact SSP Group's performance?
The conflict led to reduced air travel and airline capacity, affecting passenger volumes in APAC and EEME regions.
How did UK and Ireland markets perform for SSP Group?
UK and Ireland markets provided a boost, with fourth-quarter like-for-like sales rising by 9%.
What were the main challenges for US travel demand?
Budget-conscious US travelers cut back on vacation plans due to higher airline ticket prices and elevated fuel costs.
Did SSP Group experience any positive trends in other regions?
Passenger volumes in Gulf markets rebounded to 90% of prior-year levels, showing some recovery.

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