Airline fuel costs have risen amid the ongoing conflict in the Middle East, making summer travel difficult for many consumers. However, Royal Caribbean noted that the higher airfare prices aren't stopping vacationers from going on cruises.
Domestic economy ticket prices are up 21% from a year earlier to an average of $570, while premium-seat prices rose 17% to an average of $1,444 per trip, according to Airlines Reporting Corp. (ARC) data released April 16.
CBS News also reported that airfare prices were up nearly 15% in March compared to the same time last year. Continuing, the article states that, as of April 13, the average domestic round-trip flight cost $358, up 18%, or about $55, from the same period a year ago.
Spirit Airlines is feeling the pressure, too. The ultra-low-cost carrier said they only have enough cash to continue operations for days, not weeks, according to 6abc. There had been ongoing discussions about a $500 million government bailout, but they've since stalled.
The carrier has been struggling ever since the pandemic, and if forced to liquidate, it would become the first significant U.S. airline in over two decades to completely halt operations due to financial problems.
Despite the troubling times for the airline industry, cruise demand has remained resilient
Would you believe it if I told you that a round-trip flight from Charlotte, North Carolina, to London, England, was around $1,700 per person on American Airlines? Despite the astronomical cost, my partner and I still have plans to travel to Europe this summer and take a five-night cruise aboard Liberty of the Seas. To us — and many other travelers right now — higher airfare is simply the reality of traveling today, whether to Florida, Texas, or beyond.
"[W]e've seen a slight impact, obviously, because when the airfares go up, it does have an impact. [T]he great thing is we've got a phenomenal global infrastructure," explained Michael Bayley, President and CEO of Royal Caribbean International, during the company's Q1 earnings call on April 30, 2026.
"[T]he North American consumer, as we see it and as we commented in our remarks, is very strong. And at least for our customers in terms of where their balance sheets are, where their level of employment is..., and their propensity to vacation and their propensity to cruise with us is, is really... at the highest levels that we have seen in the past," Jason Liberty, CEO of Royal Caribbean Group, added.
Certain external factors did create short-term hesitation, particularly when it came to European cruises and longer-haul flights; however, demand quickly stabilized.
"In recent weeks, bookings for Mediterranean itineraries have been rebounding for the limited remaining inventory," the company said in its press release.
The company had a strong first quarter, too, despite all the ups and downs, reporting total revenue of $4.5 billion, an 11% increase year over year, along with net income of $0.9 billion.
Hassle of airport travel
According to Liberty, the issues go far beyond the cost of airfare itself. Instead, it is more about the growing frustration travelers associate with the overall airport experience, ranging from hectic security lines to flight delays and cancellations.
However, those who don't want to deal with major airports can choose to drive to cruise ports, which adds a layer of flexibility and convenience that benefits the cruise industry.
For example, those driving from the Atlanta area to Fort Lauderdale or Miami during the government shutdown didn't have to worry about traveling through the Hartsfield-Jackson Atlanta International Airport (ATL), where, according to ABC News, some travelers faced TSA security lines stretching up to four hours in late March.
Orlando International Airport (MCO), which is already a hectic airport due to its proximity to the major theme parks in Florida, also experienced longer-than-usual lines, further highlighting the appeal and convenience of skipping the airport altogether and driving to the cruise port instead.
"[A]s you can see in our, in our first quarter results... while we saw some of that [hesitation]... we also saw the consumer break through on that, and we saw a little bit more of our drivable markets kind of lift up," Liberty added.
Read more: Fly in same day? Why it's a mistake to fly the same day as your cruise
Vacations are still a top priority, and cruises remain one of the best bangs for your buck
Although factors like rising airfare costs, reduced airline capacity, and flight disruptions created initial hesitation among travelers, they haven't derailed the broader desire to vacation.
"Travel remains a priority for consumers, with guests becoming more selective and value-focused in how and where they choose to travel," said Naftali Holtz, Chief Financial Officer, Royal Caribbean Group.
"That dynamic aligns well with the attractive value proposition of our experiences, which is why we have done so well historically, even during times of uncertainty."
"Our performance reflects consistently strong execution by our teams and the compelling value proposition and differentiated experiences our brands offer consumers who continue to prioritize experiences," Liberty added.
That shift toward value and differentiated experience plays directly into cruising's strengths, which helps to sustain demand as broader travel challenges persist globally.
Read more: I always do 6 things before I book a cruise if I have to fly there
