The Carnival Is Not Over: A Remarkable Bounceback For Cruise Industry After Punishing 2 Years
Portfolio Pulse from Neil Dennis
Cruise line operators Carnival (CCL) and Royal Caribbean (RCL) have seen their shares more than double in 2023, with Carnival's stock up 128% and Royal Caribbean's up 145%. Norwegian Cruise Lines (NCLH) also gained 66%. The recovery is attributed to rising passenger numbers, lower oil prices, and the prospect of lower interest rates. Carnival's third-quarter revenues were the highest ever, driven by strong demand. The Defiance Hotel, Airline, and Cruise ETF (CRUZ), which includes cruise line operators, is up 33% year to date. However, Carnival noted rising input costs in its September quarterly results presentation, although oil prices have since fallen below $80 a barrel.

December 19, 2023 | 1:53 pm
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POSITIVE IMPACT
Carnival Corporation's shares have more than doubled in 2023, with a 128% increase year to date, buoyed by record third-quarter revenues and strong demand.
The significant increase in Carnival's share price is directly related to its financial recovery and record revenues, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The Defiance Hotel, Airline, and Cruise ETF (CRUZ) is up 33% year to date, reflecting the positive performance of its holdings, including cruise line operators.
CRUZ's performance is positively correlated with the cruise industry's recovery, indicating a favorable short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Norwegian Cruise Lines' shares have gained 66% in 2023, participating in the industry's recovery trend and benefiting from increased demand.
The gain in Norwegian Cruise Lines' shares reflects the broader industry recovery and is likely to have a positive short-term impact.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Royal Caribbean's shares have seen a remarkable 145% increase in 2023, benefiting from the overall industry recovery and increased passenger numbers.
Royal Caribbean's stock performance is closely tied to the industry's recovery and its own growth in passenger numbers, suggesting a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90