Carnival Cruise Reroutes Red Sea Voyages Amid Houthi Attacks

The Carnival Miracle cruise ship operated by Carnival Cruise Lines sits docked at Pier 27 in San Francisco, on Sept. 30, 2022. Justin Sullivan/Getty Images

Cruise company Carnival is rerouting 12 ships that were set to cruise through the Red Sea later this year, due to ongoing attacks on civilian ships by Iran-backed Houthis in Yemen.

Citing recent developments and following consultations with global security experts and government authorities, Carnival announced its decision to reroute a total of 12 ships across seven brands.

These ships were originally scheduled to transit through the Red Sea through May 2024.

The company said in a Jan. 30 press release that it has been “actively monitoring” the situation in the Red Sea and surrounding region and is committed to the safety and well-being of its guests and crew.

The Miami, Florida-headquartered cruise operator said that the rerouting decision is expected to have an impact of seven to eight cents on its adjusted earnings per share for the full year 2024, with the “vast majority of the impact” expected to occur in the second quarter.

Carnival had forecast an adjusted profit per share of 93 cents for the full year in December.

However, officials noted there has not been an impact on booking trends due to the Red Sea situation and the company has no other Red Sea transits scheduled until November 2024.

“The company has experienced an early and robust start to wave season (peak booking period), exceeding expectations, with bookings volumes since November hitting an all-time high. For 2024, the company continues to have the best-booked position on record, with both pricing (in constant currency) and occupancy considerably higher than 2023 levels. In fact, the first half of 2024 is almost fully booked,” Carnival said.

Carnival expects that its ongoing strong booking momentum will result in “outperformance during the year,” which will help offset the impact of rerouting the 12 cruises.

Canceled Cruises

The announcement comes after rival Royal Caribbean said earlier this month that it had canceled two voyages set to travel through the Red Sea—one from Muscat to Dubai and another from Dubai to Mumbai—due to safety concerns.

It was also forced to amend the itinerary of a cruise between Aqaba and Muscat to disembark guests in a port city near Athens.

In a statement at the time, the company said it will make additional changes to schedules and routes if required.

Elsewhere, Swiss-Italian operator MSC Cruises called off three trips scheduled to set sail in April from South Africa and the United Arab Emirates to Europe due to the situation in the Red Sea.

Those three ships will now transfer directly to Europe without any passengers on board and avoid transiting through the Red Sea, according to the cruise operator.

A Royal Air Force Typhoon FGR4 taking off from an unidentified base for attacks on Houthi targets in Yemen, on Jan. 22, 2023. Ministry of Defence

US Strikes in Yemen

The changes to the schedules among multiple cruise operators come as tensions between the United States and the Houthis—who control most of Yemen and have been designated as a terrorist organization by the U.S.—continue to mount.

The Houthis have defied calls from Washington and the international community to halt their missile and drone attacks on Red Sea shipping routes, despite warnings from the U.S. that there would be consequences if they failed to do so.

Houthi officials say their attacks are a show of support for Palestinians in the Gaza Strip amid the Israel-Hamas conflict.

Following multiple warnings, the U.S. military has conducted several airstrikes against the Houthis since early January. The airstrikes are said to target underground storage sites, unmanned aerial vehicles, ballistic and cruise missiles, as well as air surveillance capabilities.

While Abdel-Malik al-Houthi, the leader of the Houthis, has vowed the movement will respond to such strikes with greater attacks, the Pentagon has not ruled out additional strikes in Yemen.

However, Washington insists it aims to de-escalate tensions and restore stability in the Red Sea, despite concerns the situation could expand into wider regional conflict.