Royal Caribbean Group said a prolonged Middle East conflict had softened demand for its European sailings this summer, trimming yield growth for the back half of 2026. The situation had “persisted longer than anticipated, influencing consumer destination preferences and resulting in more modest yield growth for Europe sailings this summer,” he said. That’s not to say that European yields are down. European yields are still very good for this year, but they are less than what we had expected,” he said, adding that the company “would’ve raised the back half of the year, if not for those activities.” Chief Financial Officer Naftali Holtz said Europe would account for 14 percent of full-year capacity and 28 percent in the third quarter, where the exposure is heaviest.