*

Launches cost-reduction programme to boost margins

*

Travel Food Services IPO in India delayed to summer 2025

*

Reviewing Italian operations, may exit loss-making

contracts

(Adds details from release in paragraphs 2,3,6 & 10, analyst

comment in 7, shares in 8, background throughout)

May 20 (Reuters) - Britain's SSP Group ( SSPPF ) on

Tuesday launched a cost-cutting drive and a turnaround plan to

revive profitability of its food outlet operations in

continental Europe, its largest market.

As part of plans to boost margins and returns in fiscal year

2026, the owner of Upper Crust, is reviewing its Italian

operations and potentially exiting loss-making contracts, it

added.

The company did not say how much it plans to cut costs, but

outlined plans for capital spending of less than 230 million

pounds this year and 200 million pounds in fiscal 2026.

Elsewhere, looming uncertainties from U.S. tariffs have hit

global companies across sectors, and has led to a slump in air

travel demand, which is denting growth prospects for companies

such as SSP, which operates food outlets at airports.

"Recent geopolitical events have led to a heightened level

of uncertainty across some of our travel markets, in particular

in North America," the company said in a statement.

SSP's North America like-for-like sales dropped 2% for the

six months ended March 31.

Panmure Liberum analysts said the cost reduction programme,

capital expenditure cuts, and strong cash generation may enable

a share buyback in the second half this year.

Shares in the firm, which runs Starbucks ( SBUX ) in

London's Heathrow airport, rose 2.3% at 171 pence.

It pushed back plans for its initial public offering in

India for its Travel Food Services business to the summer of

2025, from an earlier target in the spring.

SSP's core earnings for the half-year rose 8% to 114 million

pounds ($152.40 million). It kept its 2025 guidance unchanged.

($1 = 0.7481 pounds)