Royal Caribbean shares fell Tuesday when the cruise line operator issued a worse-than-expected outlook on higher costs for its newest ship.

Royal Caribbean raised its annual profit forecast on Tuesday, banking on resilient demand for its luxury destinations, even as the cruise operator expects to be pressured by higher fuel costs.The company forecast current-quarter profit below estimates,

Royal Caribbean’s stock falls as a slight revenue miss and disappointing current-quarter outlook offset a profit beat and raised full-year outlook.