- The Middle East conflict softened demand for European sailings.
- The impact is concentrated in the third quarter.
- Europe will account for 14pc of full-year capacity.
- European yields are still very good but less than expected.
- Royal Caribbean opened a Royal Beach Club in Santorini.
Royal Caribbean Group said a prolonged Middle East conflict had softened demand for its European sailings this summer, trimming yield growth for the back half of 2026. Chairman and CEO Jason Liberty said the conflict had modestly weighed on bookings for some near-term deployment, with the impact concentrated in the third quarter. The situation had persisted longer than anticipated, influencing consumer destination preferences and resulting in more modest yield growth for Europe sailings this summer.
Liberty stated Europe had been off to an incredible start at the beginning of the year before geopolitical activity and its effect on fuel curtailed demand. He added that European yields were still very good, but less than expected, and the company would have raised the back half of the year if not for those activities. CFO Naftali Holtz said Europe would account for 14pc of full-year capacity and 28pc in the third quarter, where the exposure is heaviest.
Demand was still strong, but the group had seen a modest and near-term impact on 2026 bookings since the last earnings call, primarily due to prolonged geopolitical activity driving a reduced yield outlook for the remainder of the year. Royal Caribbean continues to invest in the region with the debut of Legend of the Seas and the opening of a Royal Beach Club in Santorini.
Jason Liberty, Chairman and CEO, shared, “Europe had been off to an incredible start at the beginning of the year before geopolitical activity and its effect on fuel curtailed demand.”
