Norwegian, Carnival Stocks Sink to 52-Week Lows

Norwegian, Carnival Stocks Sink to 52-Week Lows

Norwegian Bliss

Two major cruise operators saw their stocks hit 52-week lows on Thursday, as Norwegian Cruise Line Holdings dipped as low as $14.48 and Carnival Corporation sank to $22.28.

Other cruise stocks were also down on Thursday, including Royal Caribbean, Lindblad and Viking, although those three were off their year-long lows.

Driving the dips were said to be concerns over fuel prices due to the ongoing Middle East situation, and a potential capacity and pricing situation in the Caribbean in the first quarter.

U.S. crude oil had topped $100 a barrel on Wednesday as strikes continue in the Middle East.

Meanwhile, multiple Wall Street analysts have pointed to the cruise industry’s 2027 first quarter Caribbean capacity and ticket pricing as a potential concern.

One note sent to investors this week had called out Norwegian Cruise Line Holdings specifically as a contributor to pricing pressure.

The company’s decision to adjust its pricing model and offer the best prices well in advance of a sailing date has been said to have an effect on pricing across the marketplace.

 

Carnival: ‘Fuel Surcharge Not Off The Table

Carnival: ‘Fuel Surcharge Not Off The Table

Carnival Pride passing the Seacombe Ferry in Liverpool photo credit Spacejunkie2

With fuel prices on the rise, a fuel surcharge is not off the table at Carnival Corporation, according to Josh Weinstein, president and CEO.

Cruise lines typically reserve a right to add a fuel surcharge to ticket pricing, should the price of oil go over a set amount. Most cruise companies have rarely used this option

“It’s certainly not off the table. We wouldn’t take anything off of the table. It’s not something we’re planning to implement in the near-term, although that could certainly change,” said Weinstein, speaking on the company’s third quarter earnings call.

“There are certainly considerations that have to be made about what’s the norm in society with the expectations of our customer,” he continued. “Obviously, you don’t go retroactively too. So you’re talking about forward bookings.

“But I wouldn’t take anything off the table. I would reiterate, though, even a fuel surcharge is temporary. And really, the one thing that we can do, no matter what, is use less fuel and that’s where our focus is. And we estimate it saved us about $375 million on the bottom line this year versus what our profile looks like in 2019 because of all those efforts.”