Royal Caribbean itineraries remain on course despite rising fuel costs

Royal Caribbean Group has confirmed there are currently no planned itinerary changes amid rising fuel costs and ongoing geopolitical uncertainty resulting from the Middle East conflict.

The reassurance comes after the parent of Royal Caribbean, Celebrity Cruises and Silversea reported “a record wave period” with total revenue increasing by 11% year-on-year to US$4.5 billion, despite a “moderation” in bookings for Mediterranean itineraries after the outbreak of the Iran war on 28 February 2026.

Speaking on the company earnings call about potential route changes due to increasing oil prices, Chief Financial Officer Naftali Holtz said itineraries were “a key part of the guest experience”, adding: “We have great ship experiences and amazing destinations and we want to maintain the quality of the experience, so the answer is we have absolutely not modified anything because of higher fuel costs. We always try to find other ways such as investments into energy efficiency and better utilisation of technology for how we use fuel, but that is not impacting the guest experience.”

Holtz added the group was approximately 60% hedged for 2026, less than 50% for next year at pre-conflict prices and roughly 25% for 2028, and the company will “continue to methodically add hedges” and “manage volatility” over time.

On the earnings call, higher fuel costs were highlighted as a headwind on full-year forecasts, along with “lower than expected contributions” from vessels the group co-owns with Tui Cruises – Mein Schiff 4 and Mein Schiff 5 – that were not able to reposition for their Mediterranean season as they were stuck in the Middle East.

However, Chairman and Chief Executive Jason Liberty was bullish in the face of “geopolitical uncertainty” affecting flights and fuel prices, insisting demand “remains strong” and customers are booking years ahead.

RELATED: 

Royal Caribbean appoints new board member

An agent’s guide to selling Royal Caribbean International cruises

Connections Cruise Arabia returns to Dubai in 2026

 

“The consumer backdrop remains healthy and demand for our vacation experiences continues to be strong across our portfolio,” said Liberty, who conceded there was a “short-term moderation” in demand for Mediterranean sailings which impacted the outlook for the upcoming summer season, but added this “soft booking trend” only lasted for a few weeks and had “turned a corner” with improved demand for “the limited inventory” remaining for the second and third quarter.

 

Holtz said this trend only affected “near-term” bookings, adding: “We don’t see these issues for next year and bookings are strong for next year.”

Liberty also mentioned “some hiccups” in demand for West Coast of Mexico itineraries because of “travel disruption concerns” during the quarter. He described both trends as “a one-time situation, which provides for great tailwinds for 2027”.

“Europe is going to do very well this year,” Liberty said, adding: “It is just less well than we had anticipated a few months ago.”

Looking ahead to the future launch of Perfect Day Mexico, Chief Executive Michael Bayley said there would be “a soft opening” in Q4 2027 followed by a full launch in 2028.

“The project is generally on track and the impact on the regional market, particularly out of Galveston, we believe is incredibly significant,” he said.

He added there was “an opportunity” for the line to grow its presence in Texas, which is “a much larger market than Florida” with a lower cruising penetration.

Bayley said: “We are expecting to own the Texas market as it relates to cruising into the Caribbean. Perfect Day Mexico combined with the Royal Beach Club in Cozumel will be the centrepiece along with our Icon Class ships. The combination of the hardware, the brand and the destination, we believe is going to be a massive accelerator for overall financial performance for the business.”

 

To partner with Royal Caribbean Arabia call UAE +971 4 331 4299, KSA 800 897 1419, or email book@rccl.ae. For more information, visit royalcaribbean.ae