Terror attacks by Houthi rebels threaten the cruise industry – financial expert warns of consequences

Terror attacks by Houthi rebels threaten the cruise industry – financial expert warns of consequences

According to a report by www.bild.de, The terrorist attacks by the Houthi rebels are no longer just paralyzing the routes of container giants and tankers, but are now also massively disrupting the cruise lines' business with tourists. For the first time, ship trips in the Red Sea and the Gulf of Aden have to be canceled due to fear of the missiles and terrorist attacks from Yemen. The route around Africa is longer, but safer for the ship and crew. Thousands of German passengers who booked trips with “AIDAbella”, “AIDAprima” and “AIDAblu” in March and April are affected. All voyages from the Persian Gulf and the Indian Ocean through the Red Sea and the Suez Canal to Western Europe have been canceled, AIDA Cruises announced on Thursday.

The impact of these cancellations on the financial industry is significant. The shipping companies are facing significant financial losses as the canceled trips lead to a direct loss of income. In addition, the cruise ships must navigate around Africa back to Western Europe without passengers, incurring additional costs for fuel, crew and other operational costs.

The cancellations not only affect AIDA Cruises, but also other shipping companies such as MSC, Tui Cruises, Costa and Hapag-Lloyd, which also have ships in the affected areas. It is therefore expected that these companies will also face financial losses and logistical challenges.

Overall, the uncertainty in the region will lead to increased operating costs and a reduced attractiveness of cruises in this area. This could have a long-term impact on the share prices of affected shipping companies and cause investors to reconsider their positions in these companies. The long-term stability and profitability of the region's cruise business are therefore at stake.