Unable to use stolen Cuban ports to dock in Cuba, Carnival Cruise Lines has lowered its earning estimates by nearly 5%. Carnival joins other American cruise lines who have dropped Cuba from their cruise itineraries due to the Trump administration’s ban on trafficking in stolen property in Cuba.
The Trump administration’s ban on cruise-ship travel to Cuba has made Carnival Corp more pessimistic about its financial performance this year.
Carnival cut its full-year earnings-per-share forecast from $4.35-$4.55 to $4.25-$4.35 in its second-quarter earnings report, released on Thursday, citing travel restrictions between the US and Cuba as one of the reasons for its revised expectations. The company projected the travel ban would slash $0.04 to $0.06 from its share price this year.
Carnival said canceled cruises on its Carnival Vista ship and lowered expectations for net revenue also contributed to the cut in its full-year earnings forecast.
In a note to investors, JPMorgan said it believed Carnival shareholders had expected the impact of the Cuba travel ban to be too small to have a negative impact on earnings guidance.
The ports being used by cruise ships traveling to Cuba were stolen by the Castro dictatorship at gunpoint from their rightful owners. Using the ports and paying the Castro dictatorship for the privilege is in reality trafficking in stolen property. With the activation of Title III in the Helms Burton Law, the rightful owners now have the right to sue entities who are trafficking in their property.
Despite the lawlessness of doing business with thieves, it seems we’re supposed to feel sorry for Carnival Cruise because banning them from trafficking in stolen property in Cuba is taking a bite out of their profits.
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