Praveen Paramasivam

(Reuters) –Cruise operator Royal Caribbean (NYSE:) Group stated Friday that the Omicron coronavirus variant had spread quickly and would slow down its return to profit by a few more months. This is another setback for the company most affected by the outbreak.

Royal Caribbean shares fell 4% after the bleak outlook and a greater-than-expected quarterly profit. It also weighed heavily on Carnival (NYSE) Corp, and Norwegian Cruise Lines Holdings Ltd.

In recent months, the Omicron flood has forced cruise companies to modify their travel itineraries or cancel voyages. It also slowed a slow recovery in the sector. Most of the Omicron pandemic’s duration was spent at U.S. port ports.

Jason Liberty, Chief Executive Officer of Omicron stated that the timing was especially difficult because a typical wave booking period starts in January.

Celebrity Cruises owners expect a loss in the first half 2022, before the business turns profitable within six months. Refinitiv analysts polled had predicted a loss of 5% for the quarter. However, they forecast a rise in profits by the end of the second quarter.

Ivan Feinseth (chief investment officer at Tigress Financial Partners) stated that “a recovery is” just going to keep getting pushed out. He also said there will be delays, starts, and stops to ensure the end of the pandemic.

Due to the rise in COVID-19, it has been urged by the U.S. government that cruise travelers should be cautious about their travels. Even frequent passengers on cruises have been advised not to go.

Total revenue was $982.2 Million in the fourth quarter. This is below analysts’ estimate of $1.04 Billion. On average, analysts expected a loss per share of $3.92. The $4.78 adjusted per-share result was even higher.

Royal Caribbean reported that reservations had increased in January to levels pre-Omicron, while cancellations have declined.