Drop in pound and higher fuel prices weigh on Royal Caribbean

Billy Bambrough
Follow Billy
Worlds Largest Cruise Ship Docks In Southampton
Royal Caribbean reiterated that its bookings for the rest of the year remain strong (Source: Getty)

Rising fuel prices and negative currency effects – notably from the fall in the pound – have forced Royal Caribbean Cruises to cut its full-year outlook.

Despite the warning Royal Caribbean reported a profit of $229.9m (£172.6m), or $1.06 a share, up from $185m a year earlier.

Revenue climbed 2.3 per cent, hitting $2.11bn compared with analysts expectations of $2.17bn.

Royal Caribbean lowered its 2016 per-share earnings forecast to $6 to $6.10 due, in part, to the UK’s vote to quit the European Union earlier this year.

The pound yesterday moved higher against the dollar and the euro despite the Bank of England expected to ease on monetary policy tomorrow and news that the UK construction sector shrank at its fastest pace since 2009.

“Our business remains strong and we continue to improve our return profile,” said chief executive Richard Fain in a statement.

Related articles