Cruise Line Stocks Face More Choppy Waters
Things are starting to get difficult again for the cruise line operators. This could've been a good week for the industry, as Royal Caribbean (NYSE: RCL) successfully raised money to push out upcoming debt maturities. However, COVID-19 outbreaks on ships operated by all three of the leading players and a problematic guidance update from the U.S. Centers for Disease Control and Prevention (CDC) have made it a rough start to 2022 for the cruise lines.
It's now been nearly 22 months since the cruise lines had to shut down as the COVID-19 crisis became a global calamity. U.S.-based sailings began to gradually start up again this past summer, but the recovery process has been slow. Analysts see Royal Caribbean returning to profitability later this year -- with Carnival (NYSE: CCL) and Norwegian Cruise Line Holdings (NYSE: NCLH) following next year -- but we've seen how those forecasts can be disrupted before.
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Source Fool.com
