Royal Caribbean changes course after Trump veto on Cuban cruises

The surprise decision of Donald Trump's administration last month The removal of nascent Cuban cruise activity will reduce Royal Caribbean's profits by about $ 60 millionor $ 0.30 for refunds and reduced fees for new routes.

Cuba was briefly a lucrative market for US cruise lines, attracting new pbadengers at above-average prices. In an interview, Royal Caribbean Executive Director Richard Fain said the company had up to four ships calling on the island, vessels that will now reach other ports in the region. Recently, cruise lines have also canceled some stops in Puerto Rico due to riots on the island.

Shares of Miami-based Royal Caribbean fell to 3.2% in New York before recovering slightly.

Despite the problem of Cuba, the world number two cruises announced Thursday its second quarter results: exceeded badysts' estimates and raised its forecasts for the year, thanks to the strength of the economy, new ships and new destinations.

Advantages and disadvantages of a cruise

The company expects to realize between $ 9.55 and $ 9.65 per share this year, against a forecast of about $ 9.45. This quarter, the company expects a profit of 4.35 USD per share, 2 cents less than the forecasts of badysts. Royal Caribbean expanded its luxury business with the acquisition of Silversea Cruises last year, launched new vessels and added a ship to China.

Strong US demand overcomes the weakness of Europe. Improvements made on the company's private island in the Bahamas, CocoCay, also improved the results.

For the second quarter, Royal Caribbean announced that its profit had risen to $ 2.54 per share, which exceeded Wall Street's forecast of $ 2.45. Revenues increased 20% to $ 2,810 million, slightly higher than badysts' estimates.