Thursday 20 June 2019 7:27 pm

Carnival shares sink after Trump's Cuba cruise ban hits bookings

London-listed shares in Carnival Cruises sunk 12 per cent yesterday after the travel company cut its profit forecast due to the Trump administration’s sudden ban on cruises to Cuba.

The cruise giant also blamed higher expenses and an expectation of lower ticket prices in the coming months for the downgrade.

The second quarter heralded better trading for the Miami-based company, with net cruise revenue up 5.2 per cent on a constant currency basis to $3.8bn (£3bn).

However net income for the three months to 31 May slid to $451m, compared to $561m for the same period last year.

US President Donald Trump’s announcement reinstated a travel ban to Cuba via cruise ships, personal aircraft or boats.

The ban meant a forced change in itinerary for close to 800,000 Americans with bookings that included the Communist island state.

Carnival said the disruption from the ban would hit earnings per share by between four and six cents.

Its revised earnings per share outlook for the year is now between $4.25 and $4.35, a downgrade from March when it stood at $4.35 and $4.55.

The downgrade also dragged on the US-listed shares of cruise holiday rivals Royal Caribbean Cruises and Norwegian Cruise Lines.