By May, Carnival Corp. will reroute 12 ships from seven brands that were scheduled to transit the Red Sea.
The ships are Aida Cruises' AidaBlu, AidaBella and AidaPrima. Acadia by P&O Cruises; Princess Cruises' Coral Princess and Island Princess; Deliziosa and Toscana in the Costa; Queen Mary 2 of Cunard; Zuiderdam on the Holland America Line; and Seabourn's Sojourn and Encore.
After May, Carnival Corp. has no other transit through the Red Sea until November.
The route change is expected to have an earnings impact of 7 to 8 cents per share in 2024, with the largest impact expected in the second quarter, Carnival Corp. reported Tuesday. Meanwhile, the company said geopolitical tensions in the Red Sea had not impacted booking trends.
Yemen's Houthi rebels have been attacking ships transiting the Red Sea for months. At least two cruise lines that had planned to sail past Yemen earlier this month, Silversea and MSC, decided to reroute their ships.
Wave reservations that exceed expectations
Carnival Corp. said its Wave season got off to a solid start, exceeding expectations, with bookings reaching an all-time high since November.
The company said it has its best booking position on record, with prices and occupancy rates significantly higher than in 2023. The first half of 2024 is nearly fully booked, and based on current momentum, Carnival Corp. believes it will surpass and offset previous revenue forecasts. Impact of rerouting the Red Sea.
Carnival Corp. also announced that it would leverage its cash flow strength to pay off some debt early. It will reduce interest expense by repaying $571 million of its 9.875% second lien senior secured notes due 2027. The move eliminates all remaining second lien debt, the company said.
This report was updated on January 31 for affected vessels.
