The Carnival Paradise cruise ship arrives in port June 30, 2017 in Havana, Cuba.
Alexander Creutzmann | Mambo photo | Getty Images
Carnival cut its profit forecast for the year on Thursday due to the Trump administration’s sudden ban on cruises to Cuba and higher expenses related itinerary changes for one of its ships.
Shares of the company fell 7% in trading before the bell and dragged down its rivals Norwegian Cruise Line and Royal Caribbean Cruises.
Carnival is the latest company to warn of the financial impact of the United States banning visits to the Caribbean island via passenger and recreational vessels, a move that sent cruise operators scrambling to rearrange their itineraries.
The company also said it expects lower ticket prices in the coming months, further pressuring earnings.
The Miami-based company said the ban on travel to Cuba would have about a 4 cent to 6 cent per share impact on its full-year earnings, while changes to cruise itineraries for its Carnival Vista ship, which has been unable to sail at regular cruising speed, would have an 8 to 10 cent impact.
The company has had to add an extra day of sailing for the ship’s cruises since the ban and will bear the expenses for the additional day.
The company also expects profits to be dented by 10 to 12 cents as it expects lower net revenue yields, an important metric which includes bookings and on-board spending, in the second half of the year.
Overall, Carnival said it now expects 2019 adjusted earnings in the range of $4.25 to $4.35 per share, down from an earlier forecast of $4.35 to $4.55.