Royal Caribbean Group cut its revenue outlook for the year, as prolonged geopolitical uncertainty hurt bookings in the second quarter.

The cruise line on Tuesday posted net income of $1.13 billion, or $4.20 a share, for its three months ended June 30, down from $1.21 billion, or $4.41 a share, a year earlier.

Stripping out one-time costs, earnings came in at $4.21 a share. Analysts polled by FactSet expected adjusted earnings of $3.98 a share.

Total revenue climbed 6.5% to $4.83 billion, roughly in line with Wall Street models.

Royal Caribbean said it benefited from strong close-in demand and lower costs during the recent quarter. The overall demand environment remains strong, though the company noted "a modest, near-term impact on bookings for select itineraries, primarily due to prolonged geopolitical activity."

Cruise operators have been getting hammered this year as the war in the Middle East has caused fuel prices to surge and hurt demand. Rival cruise line Carnival said last month that extreme geopolitical volatility has disrupted bookings, and the company issued a soft outlook, expecting higher fuel costs to continue to weigh on profit.

Looking ahead, Royal Caribbean said demand trends are improving.

"While still very early, booking trends for 2027 are encouraging and pacing ahead of historical levels, including for itineraries where demand was impacted by geopolitical developments this year," Chief Financial Officer Naftali Holtz said.

For 2026, Royal Caribbean now expects revenue to grow 9%, down from a prior forecast of roughly 10% growth. It also raised its adjusted-earnings outlook to be in the range of $17.73 to $17.87 a share, from a previous forecast of $17.10 to $17.50 a share. Analysts were looking for $17.32 a share.

The company continues to expect fuel expenses of about $1.34 billion for the year.

For the current quarter, Royal Caribbean guided for adjusted earnings of $6.26 to $6.36 a share, the low end of which is in line with analyst views. Fuel costs are expected to come in at about $362 million during the quarter.

Shares sank 2.5%, to $297.56, in premarket trading.