Carnival Radiance cruise ship in Port of Avalon, California, May 19, 2023.
Aaron Lamp/Bauer Griffin | GC Images | Getty Images
carnival The itineraries of more than a dozen cruise ships scheduled to transit the Red Sea will be changed, it announced Tuesday, amid rising tensions in the Middle East.
“In view of recent developments and in close consultation with global security experts and government authorities, the company has changed the itineraries of 12 ships of seven brands that were scheduled to transit the Red Sea until May 2024. “We have made the decision to do so,” the cruise line said in a statement. press release.
Repeated attacks on ships by the Iranian-backed Houthi rebels have forced major shipping and oil companies to reroute routes, increasing shipping times and increasing costs.
The United States responded by attacking the Houthis in Yemen, but US President Joe Biden acknowledged earlier this month that the retaliation had not stopped the group. A weekend attack by Iranian-backed extremists in Jordan killed three U.S. service members and heightened tensions in the region.
Carnival expects the change in course to have an impact of 7 cents to 8 cents on adjusted earnings per share in 2024. The company expects full-year adjusted earnings of 93 cents per share, according to its fourth-quarter results released last month. The cruise liner is scheduled to announce its financial results for the first quarter of fiscal 2024 in March.
Carnival is the latest company to announce disruption from the Red Sea conflict. Early this month, royal caribbean Swiss and Italian operator MSC Cruises announced it was canceling trips in the region.
Carnival stock was flat on Tuesday morning. The stock price has increased more than 50% in the past year. While bookings have rebounded from the coronavirus pandemic, the stock is down nearly 70% from its pre-pandemic highs.
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