Sunday, May 28, 2023
HomeHeadlinesRoyal Caribbean Signals Slow Summer Demand In Europe

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Royal Caribbean Signals Slow Summer Demand In Europe

Royal Caribbean Group RCL.N on Thursday flagged slow summer demand for European cruises due to the Ukraine crisis, after a dull first quarter as it reeled under a resurgence in COVID infections in some parts of the world.

Shares of the cruise operator fell about 5% to $73.87 after Royal Caribbean Group said higher fuel and food costs, spurred by inflationary and supply chain-related challenges, are expected to weigh on 2022 earnings.

The company said while bookings for Europe sailings improved throughout the first quarter, they slowed following Moscow’s invasion of Ukraine in late February. Cruises in the Baltic are expected to see the biggest impact.

In March, Royal Caribbean joined rivals Norwegian Cruise Line Holdings Ltd and Carnival Corp in canceling sailings to Russia and said it was removing Russian port city St. Petersburg from its upcoming itineraries.

However, global booking volumes in March and April were significantly higher compared to the same period in 2019, with strong demand for North America-based itineraries.

Read Also: Demise of Crystal Cruises Leaves Customers Out $100 Million—or More

“Recovery is clearly under way…what the shape of that (recovery) curve looks like for the balance of 2022 will depend on the health of the consumer as it relates to inflationary pressures and impacts from the Ukraine war,” said M Science analyst Michael Erstad.

The decision by the U.S. Centers for Disease Control and Prevention (CDC) to remove COVID-19 notice against cruise travel in March, almost two years after introducing a warning scale, is expected to boost growth for cruise companies after a long period of minimal business.

Royal Caribbean Group’s revenue rose to $1.06 billion in the first quarter from $42.01 million a year earlier, but missed analysts’ average estimate of $1.15 billion, according to IBES Refinitiv data.

Excluding items, it posted a loss of $4.57 per share, compared with estimates for a loss of $4.47.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...