Carnival Corp. said Tuesday it’s almost sold out for the first half of 2024 after its booking volumes since November hit an all-time high, but its stock dropped slightly as the cruise-line operator disclosed a profit hit from re-routing vessels to avoid attacks in the Red Sea.
Carnival expects an impact of 7 cent to 8 cents a share in its adjusted 2024 earnings due to rerouting around the Red Sea conflict, which involves Iranian-backed Houthi Rebels firing on ships in retaliation for Israel’s military action in Gaza against Hamas. The conflict has caused ships of all kinds, including tankers, to avoid the area and take other routes.
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Most of the profit impact for Carnival will be in in its second quarter. Overall, it has not seen an impact on booking trends due to the Red Sea situation. Carnival will report first-quarter results on March 21, and the second-quarter update will take place about three months after that.
Overall, Carnival said it is seeing an “an early and robust start to wave season (peak booking period), exceeding expectations.”
Carnival Corp.’s
CCL,
stock fell 0.2% in afternoon trades.
“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,” the company said.
“The company believes its continued strong bookings momentum is expected to deliver outperformance during the year, offsetting the Red Sea rerouting impact.”
Carnival Corp.’s stock has risen by 54.1% in the past year, compared to a 20.9% rise by the S&P 500
SPX.
This story originally appeared on Marketwatch
