Without Cuba cruises, Royal Caribbean lowers profit outlook

Royal Caribbean Cruises Ltd. said eliminating Cuba from the
itinerary of various sailings will reduce 2019 earnings by $52 million to $73
million.

“While the affected sailings impact only 3% of our 2019
capacity, the extremely short notice period for this high-yielding destination
amplifies the earnings impact,” said Jason T. Liberty, executive vice
president and CFO. “The result of this policy change has created a
short-term impact to our guests, operations and earnings; fortunately, we have
many alternative and attractive destinations for our guests to choose from.”

The other major cruise companies affected by the decision to
ban U.S. cruises to Cuba haven’t commented on the financial impact.

Cuba accounts for 1% of capacity at Carnival Corp. and 4% at
Norwegian Cruise Line Holdings, according to a note from Wells Fargo
Securities, which estimated the economic impact on Carnival at $21 million to
$42 million and on Norwegian at $26 million to $60 million.