by Sarah Kuta
Last updated: 11:40 AM ET, Wed January 31, 2024
Carnival Corporation is the latest cruise company to adjust its itineraries because of the ongoing Houthi rebel attacks on vessels in the Red Sea.
The company plans to reroute 12 ships, representing seven of its different cruise brands, that were supposed to sail through the Red Sea between now and May, according to an update shared with investors on Tuesday. Carnival Corporation owns multiple cruise lines and did not specify which brands or vessels the decision will affect.
The next Carnival Corporation cruises scheduled to transit the Red Sea are not until November.
The reroutings are expected to have an adjusted earnings per share impact of $0.07 to $0.08 for 2024. But, so far, the Red Sea conflict has not affected cruise bookings, according to the company.
Carnival Corporation made the rerouting calls after “close consultation with global security experts and government authorities,” according to the statement.
Earlier this month, MSC Cruises opted to cancel three April repositioning cruises that would have sailed the Red Sea. Silversea Cruises has also canceled several January sailings in the region, while Crystal Cruises is still watching the situation closely.
The Houthis are an Iranian-backed political and military group who say they are firing missiles at vessels in the Red Sea in support of Palestinians in Gaza. Their missile strikes have also disrupted the shipping industry, as the Red Sea is a vital trade route between Europe and Asia.
Carnival Corporation Reports Strong Wave Season
Red Sea situation aside, Carnival Corporation also updated investors on sales and other financial metrics. Wave season—the period between January and March when cruise lines offer promotions—has been strong for the company’s cruise lines so far. Bookings made since November have reached an all-time high, and the first half of 2024 is almost fully booked.
“The company believes its continued strong bookings momentum is expected to deliver outperformance during the year, offsetting the Red Sea rerouting impact,” the statement said.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
