Carnival Cruise Lines saw European bookings fall from March through May because of “extreme geopolitical volatility” linked to the U.S.-Israel war with Iran.
But despite headwinds from the conflict and ensuing high fuel prices, the world’s largest cruise operator still reported record results, CEO Josh Weinstein said during an earnings call Wednesday.
“We achieved another quarter of record results, marking our twelfth consecutive quarter of record net yields and delivering over 20 percent more to the bottom line, overcoming extreme geopolitical headwinds and nearly 30 percent higher fuel costs,” Weinstein said.
Carnival said its bookings for the second half of 2026 are higher than the same period in 2025. The cruise operator only has 7 percent of its room inventory left for the rest of 2026, the company said.
Other cruise lines also saw declines in Mediterranean bookings because of the war, as fears over the safety of American citizens led the Department of State to issue warnings for the Middle East region.
The U.S. government offered to assist fleeing American citizens, and warned citizens not to travel to Israel or Lebanon, two countries in the war that border the Mediterranean Sea.
Royal Caribbean reported its Mediterranean bookings “moderated” in March and early April “due to geopolitical developments,” the company noted in a press release about its results for the first three months of the year.
Mediterranean bookings were down at Norwegian Cruise Line in the first three months of 2026, with the company attributing the slowdown to “headwinds related to disruptions in the Middle East, higher fuel expense and signs of softer demand as consumers reevaluate travel plans,” the company said in an earnings report May 4.
The slowed Mediterranean bookings put a slight damper on what has been a booming 15 months for the global cruise industry.
A record 32.7 million passengers traveled on cruise lines in 2025, 90 percent of whom said they intend to sail again, according to Cruise Lines International Association.
The luxury travel industry hasn’t seen much impact from the war. Travel agency First in Service reported in June that 44.1 percent of its advisors said the war “has resulted in no change in travel business volume,” while another 14.7 percent said their business volume increased, according to industry publication Travel Weekly.
President Donald Trump signed a peace deal with Iran June 15, bringing hope that there may be an end in sight for the war.
