Royal Caribbean Raises Annual Profit Forecast Amid Booking Challenges from Middle East Conflict
Royal Caribbean Cruises (RCL) raised its annual profit forecast for the year after surpassing quarterly earnings estimates, despite a modest impact on bookings due to travel disruptions linked to the U.S.-Iran conflict. The company reported strong demand from high-income travelers and benefited from higher pricing and onboard spending that offset rising fuel costs. Bookings were affected primarily in Q3, especially for Mediterranean itineraries where combined airfare and cruise costs have made trips more expensive for American consumers. As a result, some customers are delaying travel or choosing the Caribbean over Europe. Royal Caribbean trimmed its revenue growth outlook to 9% from 10%, but increased its adjusted profit forecast to $17.73–$17.87 per share. The company reported quarterly earnings of $4.21 per share, exceeding analyst expectations and posting a 6% rise in revenue to $4.83 billion.
Tickers: $RCL
Topics: consumer demand cruise industry fuel costs geopolitical impact