(Alliance News) - Carnival PLC on Tuesday predicted a profit hit as it re-routes itineraries due to Red Sea disruption, though the cruise ship operator hailed "robust" recent bookings.
Carnival said it expects a USD0.07 to USD0.08 hit to its adjusted earnings per share for its financial year ending November, the bulk of which hitting its second quarter.
Carnival said it will reroute itineraries for 12 ships across seven brands, which were scheduled to pass the Red Sea through May 2024.
However, it added: "The company has not seen an impact on booking trends due to the Red Sea situation and has no other Red Sea transits until November 2024.
"The company has experienced an early and robust start to wave season (peak booking period), exceeding expectations, with bookings volumes since November hitting an all-time high. For 2024, the company continues to have the best booked position on record, with both pricing (in constant currency) and occupancy considerably higher than 2023 levels. In fact, 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."
Carnival shares traded 2.6% higher at 1,186.00 pence each in London on Tuesday afternoon.
By Eric Cunha, Alliance News news editor
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Carnival (CCL)