CARNIVAL Corporation is rerouting its Red Sea (pictured) transits for 12 ships across seven cruise lines due to the crisis in the inlet (CW 17 Jan). The vast majority of the impact will take place in the second quarter, Carnival stated, with the company having said it has not seen...
CARNIVAL Corporation is rerouting its Red Sea (pictured) transits for 12 ships across seven cruise lines due to the crisis in the inlet (CW 17 Jan).
The vast majority of the impact will take place in the second quarter, Carnival stated, with the company having said it has not seen any impact on booking trends due to the crisis.
Carnival has no other transits through the Red Sea scheduled until Nov.
The diversion is expected to have an adjusted earnings per share impact of US$0.07 to US$0.08 for the full year.
Carnival joins other cruise companies, including MSC Group and Royal Caribbean Group, which have also cancelled a number of their Red Sea voyages.
CW has approached other cruise companies for comment on their Red Sea voyages.
Carnival also reported an early and robust start to wave season, which has exceeded expectations, with booking volumes since Nov 2023 hitting an all-time high.
The company is maintaining its best booked position on record, with both pricing and occupancy considerably higher than last year’s levels.
The first half of 2024 is almost fully booked, Carnival reported, with the company expecting its continued strong bookings through the year, which will offset any Red Sea rerouting impact.
The company also confirmed the redemption of the outstanding US$571 million second-priority senior secured notes, due 2027, eliminating all of the outstanding second lien debt.
This redemption is consistent with Carnival’s Dec guidance, with the company using its cash flow strength to reduce interest. MS
