✈️ Travel Impact

Royal Caribbean Trims Revenue Outlook Amid Middle East Booking Impact

Royal Caribbean Cruises trimmed its 2025 revenue growth forecast to 9%, down from the 10% projected last quarter, citing a "modest, near-term impact" on bookings from prolonged Middle East conflict, including the U.S.-Iran war affecting Mediterranean sailings and pushing up airfare. Despite this, the company said it remains booked at record prices with volumes above last year, and it raised full-year earnings guidance to $17.73–$17.87 per share, up from April's $17.10–$17.50 range. Net yields are now expected to rise 2.35% to 2.85% in 2026, down slightly from the prior 2.3%–3.3% forecast. Second-quarter revenue rose 6% to $4.8 billion, with adjusted net income of $1.1 billion, or $4.21 per share, beating guidance. Royal Caribbean's shares are up more than 10% this year, while Carnival and Norwegian have each fallen more than 9%, even as the broader cruise sector underperforms the market for the first time since COVID.
💡 What This Means For You

If you're booking Mediterranean sailings with Royal Caribbean, note that the company points to prolonged Middle East conflict and higher airfare as factors affecting bookings, alongside a trend toward close-in booking for flexibility. Royal Caribbean says it remains booked at record prices with volumes above last year, and full-year earnings guidance was raised to $17.73–$17.87 per share. Check your specific sailing dates and pricing directly with Royal Caribbean, especially for Mediterranean itineraries, given the near-term impact the company describes.

📝 Mark's Take

What jumps out here is that Royal Caribbean raised earnings guidance to $17.73–$17.87 per share even while trimming revenue growth to 9% from 10% — the company is squeezing more profit from a slightly smaller top line, likely via lower costs and elevated onboard spending, both of which CFO Naftali Holtz flagged. My read is the U.S.-Iran conflict's effect on Mediterranean sailings and airfare is real but contained: Royal Caribbean says it's still booked at record prices with volumes above last year. The stock market seems to agree it's the strongest operator in the group — shares up over 10% this year versus Carnival and Norwegian each down more than 9%. If I were booking, I'd watch the shift toward close-in bookings CEO Jason Liberty mentioned; it suggests less price transparency further out. Early 2027 pacing sounds encouraging per management, which is worth filing away if you're planning that far ahead.

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