Royal Caribbean cut its annual revenue forecast on Tuesday as the cruise operator said it saw a "modest, near-term impact on bookings" for certain sailings due to the uncertain geopolitical environment.
Shares were down about five per cent in premarket trading, even as the company raised its profit forecast for the year.
The company now expects annual revenue to grow nine per cent, compared with its prior forecast of a 10 per cent rise.
Cruise operators are grappling with high fuel prices, driven by uncertainty over US-Iran negotiations, raising operating costs for companies that rely heavily on marine gas oil and pressuring profitability.
The company expects adjusted profit for fiscal 2026 of $17.73 to $17.87 per share, compared with its prior forecast of $17.10 to $17.50.
Royal Caribbean said the increase in earnings expectations reflects stronger-than-expected second-quarter performance and an improved outlook for the remainder of the year, even as it accounted for a "modest booking impact for select itineraries primarily due to prolonged geopolitical activity."
(Reporting by Sanskriti Shekhar in Bengaluru ; Editing by Tasim Zahid)
