Royal Caribbean said on Thursday bookings for its luxury Mediterranean cruises have bounced back after about a month of disruption from the Iran war, sending its shares surging as much as 10.8%.
Reuters – Bookings are currently running at a higher pace than last year, the company said, even as rising fuel costs linked to the Middle East conflict prompted the cruise operator to cut its annual profit forecast.
Cruise operators, heavily dependent on fuel oil and marine gas oil, are navigating a tougher environment as stalled U.S.-Iran negotiations raise concerns about prolonged disruptions to the Middle Eastern supply, driving up oil prices.
But Royal Caribbean CEO Jason Liberty said on an earnings call that "travel remains a top priority, ranking as the number one leisure category where consumers intend to spend more."
