Carnival warns of annual earnings hit due to Red Sea disruptions

(Reuters) – Carnival (NYSE:) said on Tuesday that its annual earnings would take a hit as the cruise operator re-routes ships that were due to transit the Red Sea.

The company, which had forecast adjusted earnings per share of 93 cents for the full year 2024 in December, said it expects an impact of 7 cents to 8 cents to its profit due to the re-routing.

A growing list of companies have rerouted vessels passing through the Red Sea as the Houthis, a Yemeni militant group, steps up attacks on Israeli ships or ships heading towards Israel, in the key transit route, in solidarity with the Palestinians.

“Given recent developments and in close consultation with global security experts and government authorities, the company has made the decision to re-route itineraries for 12 ships across seven brands, which were scheduled to transit the Red Sea through May 2024,” Carnival said in a statement.