Royal Caribbean cruise lines state that profits rose; however, reduced its annual earnings forecast as the future looks like rough seas. There seem to be many contributing factors this reduction forecast including high fuel prices, canceled trips and blunt sluggish demand in the Caribbean.
The company charged more for cruises to the Mediterranean, Scandinavia and Alaska, destinations that are more profitable than the Caribbean. It has added ships and extended the sailing season in Europe to blunt sluggish demand in the Caribbean, its largest market.
Royal Caribbean operates about 35 ships under the Royal Caribbean International, Celebrity Cruises, Pullmantur and Azamara Cruises lines. The company bought Pullmantur SA, a Spanish cruise operator, last year to expand in Europe and reduce its dependence on the Caribbean (Miami Herald)