Fincantieri, the Italian company that is the world’s largest builder of cruise ships, says the cruise industry is rapidly recovering from the effects of the Covid-19 pandemic, but warns that price pressures and geopolitical events can negatively affect the cruise industry and cruise ship building.

Russian attack on Ukraine represents a disruptive geopolitical, economic, and financial event. “The macroeconomic effects related to the crisis, such as potential travel restrictions and tourism limitations which could affect the cruise industry, as well as the impacts of the sanctions towards Russia on both the global economy and international politics are complex and still hard to estimate,” the company said in a statement.

“Such phenomenon can cause in the short to medium term high uncertainty on future scenarios, such as the potential increase in commodities and energy prices, possible discontinuity in supply chains and productive activities, making it hard to evaluate side effects on the Group’s future performance,” 

Nevertheless, the cruise business is rapidly resuming activities, also thanks to the easing of restrictions; 264 vessels totalling 461,000 lower berths from 68 brands are expected to be in operation starting from March 2022, equal to around 75% of the global lower berth capacity. 

Meanwhile, CLIA’s projections on the state of the cruise industry forecasted nearly 100% of fleet sailing by summer 2022. Indeed, most cruise operators witnessed a surge in bookings in the second half of 2022 and in 2023 in line and for some even above 2019 levels.

Giuseppe Bono, CEO, however warned about uncertainties ahead: ”Inflation, raw material shortages and the ongoing conflict introduce even more uncertainties to the current scenario. The challenges we are facing require the highest level of determination and cohesion from all of our employees to address such demanding times. As a matter of fact, today’s results prove the commitment and dedication of our employees and our suppliers to the Group.”