MSC Cruises and Carnival Corp. are altering their cruise itineraries,
steering clear of the Red Sea due to increased geopolitical tensions
and attacks on shipping vessels by Houthi rebels in Yemen.
Carnival Corp. plans to reroute 12 ships across seven of its cruise
lines through May, impacting earnings by 7 to 8 cents per share for
2024. However, the company reports robust Wave season bookings,
expecting to outperform previous forecasts. Carnival Corp. will also use
its cash-flow strength to pay off US$571 million in debt early.
Similarly, MSC Cruises cancels three April repositioning voyages,
avoiding the Red Sea and the Suez Canal. The affected ships will sail
empty around Africa to Europe, offering affected guests options to
transfer to a future voyage, rebook with a refund or partial payment, or
receive a full refund.
Geopolitical conflicts in the region, including fighting between Gaza
and Israel, have further prompted cruise lines like Azamara to
reschedule sailings, highlighting the far-reaching impact on cruise
itineraries in response to security concerns.