Royal Caribbean misses revenue estimates as Omicron and Ukraine crisis hamper demand | Investment News

(Reuters) – Royal Caribbean Group missed Wall Street estimates for quarterly revenue on Thursday as a resurgence in COVID-19 infections in parts of the world and Russia’s invasion of Ukraine hampered plans to people travel.

Shares of Royal Caribbean Group fell about 1% in premarket trading, although the company said booking volumes in March and April were significantly higher compared to the same period in 2019.

The omicron variant of the coronavirus that has been cause for concern around the world has forced people to re-evaluate their travel decisions with the US Centers for Disease Control and Prevention (CDC) asking people at some point to avoid cruise travel due to reports of COVID-19 outbreaks on cruises.

However, in March the CDC removed its COVID-19 advisory against cruise travel nearly two years after introducing a warning scale.

In March, Royal Caribbean Group joined rivals Norwegian Cruise Line Holdings Ltd and Carnival Corp in canceling sailings to Russia and said it was removing the Russian port city of St Petersburg from its future itineraries.

The cruise line’s revenue hit $1.06 billion in the first quarter, from $42.01 million a year earlier, but missed analysts’ average estimate of $1.15 billion, according to IBES data from Refinitiv.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)

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Christi C. Elwood