Skip to content Skip to Search
Skip navigation

Cruise giant blames slow summer demand on Ukraine crisis

Royal Caribbean Group on Thursday flagged slow summer demand for European cruises due to the Ukraine crisis.

Royal Caribbean Group 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 coronavirus infections in some parts of the world.

Shares of the cruise operator fell about 5 percent 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 cancelling 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.

“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 US Centers for Disease Control and Prevention (CDC) to remove coronavirus 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.

Latest articles

Residents use kayaks to evacuate their flooded residential complex in Dubai following the April storm

Floods prompt Abu Dhabi to issue urban planning tender

Abu Dhabi’s Department of Municipalities and Transport has issued a tender for studies to aid the city’s urban planning efforts, including infrastructure resilience during storms. The tender for consultancy services opened last month and closes on July 4. It emerges after UAE president Sheikh Mohamed bin Zayed Al Nahyan ordered an urgent review of the […]

Qatar Kazakh mobile network

Qatar company buys Kazakh mobile network for $1bn

Qatar Power International Holding has bought Kazakhstan’s largest mobile phone network. The Qatari company, a private conglomerate based in Lusail, has bought Kazakhtelecom subsidiary Mobile Telecom-Service LLP, Reuters reported, citing a statement from the Kazakh government on Tuesday. Mobile Telecom-Service LLP is a joint venture between Swedish telco Tele2 and Kazakh high speed mobile internet […]

Saudi imports GCC

UAE dominates Saudi imports

Saudi Arabia’s imports from its neighbouring five GCC countries rose 5 percent to SAR21 billion ($5.6 billion) in the first quarter of 2024. Oman led the growth, but goods trade with Qatar suffered a steep decline, according to figures from Saudi platform Argaam, citing the Saudi General Authority for Statistics (GASTAT). Goods shipped from the […]

It is hoped the use of AI will speed up the time-consuming process of screening patients for cancer

Mubadala-backed US startup working on AI cancer care

A US genomics startup, backed by Abu Dhabi’s sovereign wealth fund Mubadala, is working with ChatGPT creator OpenAI to improve cancer screening and treatment using artificial intelligence models. Color Health, which uses data science and machine learning for genetic testing and counselling in hereditary cancer and heart conditions, has developed an AI assistant, or “copilot”, […]