Carnival Corporation’s European deployments took the brunt of the Middle East conflict in the second quarter, but bookings have begun reversing the headwinds and point to strong demand for 2027, President and CEO Josh Weinstein said on the company’s second-quarter 2026 earnings call.

Weinstein said the moderation in the back-half outlook was concentrated on European deployments, particularly in the Mediterranean, the region closest to the conflict. The impact was further underscored by elevated airfares and reduced international flight capacity for North American guests.

The company entered the quarter with both an occupancy and pricing advantage on European sailings and used much of that occupancy cushion to prioritize pricing over volume. As a result, its booked position remains ahead of last year heading into the third quarter.

Weinstein said booking trends in recent weeks suggest the company is already beginning to see a reversal of the headwinds, calling the moderation transitory and not something that alters the underlying trajectory of the business.

Demand for 2027 reinforced that view. Weinstein said European bookings for next year were up year over year in the mid-teens percentages at higher prices, supporting confidence in the longer-term demand environment as conditions normalize.

He pointed to recent developments as a turning point, noting that bookings strengthened after geopolitical tensions began to ease in June, with guests starting to plan future travel again.