Carnival, which operates cruise cruises, said on Wednesday that it will likely not sail in the Red Sea until 2025 due to continued Houthi attacks.
2024 is expected to be a record year for cruise cruises, but companies operating these cruises, such as Carnival and rival Royal Caribbean, are cautious as Houthi attacks on ships in the Red Sea disrupt shipping in the Suez Canal, faster. A sea route between Asia and Europe.
Carnival raised its 2024 adjusted earnings forecast due to ship rerouting to nine cents per share, up from seven to eight cents in January.
“We decided it was time to acknowledge the fact that we probably won't be sailing there, probably for the rest of this year and maybe early 2025 as well,” Chief Financial Officer David Bernstein told Reuters in an interview.
In January, the Miami-based company changed the routes of 12 ships through May as Houthi militias intensified their attacks on Israeli ships or those heading to Israel.
The company said that it plans to provide clear guidance in November, that is, at the beginning of the company's fiscal year. Bernstein said that five ships would be rerouted.
In January, Royal Caribbean canceled two trips to the Red Sea region, and the Swiss-Italian MSC Cruises canceled three trips scheduled to depart in April from South Africa to Europe.
But Carnival raised its annual profit forecasts on Wednesday, anticipating a record year of bookings, as it benefits from a rise in the number of people wishing to spend vacations on cruises for the first time.