Market Overview

Cruise Liners Feeling Pressure From US-Cuba Travel Change

Cruise Liners Feeling Pressure From US-Cuba Travel Change

Royal Caribbean Cruises Ltd (NYSE: RCL) earlier this week commented on the U.S. government's policy change on travel to Cuba and adjusted earnings per share in the range of 25-35 cents,

All U.S. cruise ship travel to Cuba has been banned by the Trump administration effective June 5.

Royal Caribbean Cruises changed some itineraries and is determining alternate destinations for future sailings.

See Also: Cuba's Economy Is Doing Better, But Still Has A Long Way To Go

Norwegian Cruise Line Holdings (NYSE: NCLH) also provided comments on the new travel regulations, saying it's also working diligently to accommodate the needs of guests and travel partners by quickly modifying itineraries to meet new regulations. Carnival Cruise Line (NYSE: CCL) has not yet issued any statements on this policy change.

"While the affected sailings impact only 3 percent of our 2019 capacity, the extremely short notice period for this high yielding destination amplifies the earnings impact," said Jason Liberty, CFO of Royal Caribbean Cruises. "The result of this policy change has created a short-term impact to our guests, operations and earnings; fortunately, we have many alternative and attractive destinations for our guests to choose from."

Royal Caribbean's stock fell this week and closed Thursday at $118.64 per share.

Posted-In: Government Regulations Guidance Travel General Best of Benzinga


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