What Royal Caribbean Cruises Ltd. told the SEC could break it.

From 2026 onwards substantially all of Royal Caribbean's ships will be operated by companies within the U.K. tonnage-tax regime; if U.K. tonnage-tax laws change or it fails to meet qualification requirements, it may be required to pay higher U.K. income tax, adversely affecting results (its favorable tax status also depends on the U.S. IRC and other jurisdictions).

“From 2026 onwards, substantially all of our ships will be operated by companies that are within the United Kingdom tonnage tax regime (“U.K. tonnage tax”). To the extent the U.K. tonnage tax laws change, or we do not continue to meet the applicable qualification requirements, we may be required to pay higher income tax in the United Kingdom”

Royal Caribbean faces escalating maritime environmental regulation: the EU and a new UK ETS (effective July 1, 2026) require carbon-allowance purchases, FuelEU Maritime mandates GHG-intensity reductions (2% from 2025 to 80% by 2050), and US Clean Water Act VGP/VIDA incidental-discharge standards apply; collectively the Fit for 55 proposals could materially raise costs and force modified itineraries.

“When fully implemented, the FuelEU Maritime and the remaining Fit for 55 proposals could individually and collectively have a material adverse effect on our business and results of operations due to increased costs associated with compliance and modified itineraries in the affected regions.”

Royal Caribbean's supply chain can be disrupted by factors beyond its or its suppliers' control (weather, natural disasters, labor actions, demand spikes, production/distribution problems, cyber events, third-party logistics/transportation failures) and by new laws/regulations such as U.S. tariffs and trade sanctions, which add uncertainty to trade between the U.S. and other countries.

“Our supply chain can also be impacted by new laws and regulations, such as tariffs and trade sanctions. For example, the imposition by the U.S. government of tariffs on products imported from certain countries and trade sanctions against certain countries have introduced greater uncertainty with respect to policies affecting trade between the United States and other countries.”

Increases in fuel prices have and could continue to materially adversely affect Royal Caribbean — fuel impacts not only fuel costs but crew travel, freight and other commodity prices; mandatory fuel restrictions may create uncertainty over the price and availability of certain fuel types, affecting operating costs and the value of fuel-hedging instruments.

“Increases in fuel prices have and could continue to materially and adversely affect our business as fuel prices impact not only our fuel costs, but also some of our other expenses, such as crew travel, freight, and commodity prices. Mandatory fuel restrictions may also create uncertainty related to the price and availability of certain fuel types”