Cruise Stocks Rise After Carnival Forecasts Rising Occupancy
2022.06.24 19:01
By Liz Moyer
Investing.com — Cruise stocks surged after Carnival Corporation (NYSE:CCL) reported optimistic earnings as travel demand surges.
Carnival said revenue bounced back in the second quarter, rising 50% from the first quarter though slightly below expectations. But occupancy of 69% was up from 54% in the first quarter. The company said booking volume for future sailings was nearly double the volume in the first quarter. Five of the operator’s nine brands have their entire fleets back in gear.
Shares of Carnival rose 7.7%.
Carnival did say that inflation and higher fuel prices were having an effect on its operations, and it sees a net loss for the third quarter and the fiscal year 2022.
Royal Caribbean Cruises Ltd (NYSE:RCL) shares jumped 12%, and shares of Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) rose more than 10%.
Carnival CEO Arnold Donald said, “We are aggressively, yet thoughtfully, ramping up to full operations with over 90% of the fleet now in service. We are driving occupancy higher, while at the same time significantly increasing available capacity.”
The cruise line is expecting occupancy to reach 110% in the third quarter.
