Americans are cruising again – and at record levels.
Carnival, Norwegian And Royal Caribbean all said they started the year with record individual bookings and cruise prices.
This is an impressive turnaround after the industry was largely shut down for 15 months after the Centers for Disease Control and Prevention issued a no-sail order in March 2020 at the start of the Covid pandemic in the United States. UNITED STATES.
And Royal Caribbean has led the way. Among the three cruise giants, that’s the biggest increase in ticket revenue compared to 2019. And last month, its stock price surpassed its pre-pandemic peak. Carnival and Norwegian are both trading down more than 50% from their 2019 levels.
“The main reason Royal Caribbean outperformed its peers and recovered the fastest is because it issued the least amount of stock during the pandemic. All companies had to issue shares. … All companies have had to issue convertible debt, and Royal Caribbean has been able to manage its cash flow in a way that uses as little equity as possible,” said Brandt Montour, senior equity research analyst at Barclays.
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