Through May, Carnival Corp. will reroute itineraries for a dozen ships across seven brands that were scheduled to transit the Red Sea.
The ships are Aida Cruises' AidaBlu, AidaBella and AidaPrima; P&O Cruises' Arcadia; Princess Cruises' Coral Princess and Island Princess; Costa's Deliziosa and Toscana; Cunard's Queen Mary 2; Holland America Line's Zuiderdam; and Seabourn's Sojourn and Encore.
After May, Carnival Corp. has no other transits through the Red Sea until November.
The reroutings are expected to have an earnings impact of 7 to 8 cents per share for 2024 with the largest impact in the second quarter, Carnival Corp. reported Tuesday. Meanwhile, the company said it has not seen an impact on booking trends due to geopolitical tension in the Red Sea.
Houthi militants in Yemen have for months attacked shipping vessels transiting the Red Sea. At least two cruise lines that were planning to sail past Yemen earlier this month, Silversea and MSC, decided to reroute their ships.
Wave bookings exceeding expectations
Carnival Corp. said Wave season has had a robust start exceeding expectations, with booking volume since November at an all-time high.
The company says it has the best booked position on record with pricing and occupancy considerably higher than in 2023. The first half of 2024 is nearly fully booked, and based on current momentum, Carnival Corp. believes it will outperform its previous earnings forecast, offsetting the impact of Red Sea reroutings.
Carnival Corp. also announced it is using its cash-flow strength to pay off some debt early. It will reduce interest expense by redeeming the outstanding $571 million, 9.875% second-priority senior secured notes due in 2027. The move eliminates all remaining second-lien debt outstanding, the company said.
This report was updated on Jan. 31 with the affected ships.