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Why Carnival, Norwegian Cruise Line, and Royal Caribbean Stocks Hit the Rocks Today
The Motley Fool ^ | NOV 26, 2021 | Rich Smith

Posted on 11/26/2021 10:26:52 AM PST by Capt. Tom

Investors' holiday cheer received a rude interruption on Thanksgiving Day 2021: In South Africa, a new coronavirus variant is rising -- and it's terrifying investors with fears of a prolonged cruise industry recession.

So here's the news in a nutshell: On Thursday, South African Minister of Health Joe Phaahla announced that an investigation of "cluster outbreaks" of COVID-19 in parts of the country has found a new variant of the coronavirus

Initially detected in South Africa, reports CNN, the virus has also popped up in neighboring Botswana and in Hong Kong (carried there apparently by a traveler from South Africa). .

Responding quickly to the news, the United Kingdom banned incoming flights from South Africa, Namibia, Lesotho, Botswana, Eswatini, and Zimbabwe.

Suffice it to say that cramming thousands of tourists at a time aboard a ship at sea could be considered such a "super spreading event," and so it's likely this new variant will have a depressing effect upon any cruise activity involving South Africa. The bigger story, though, is that experience has shown that coronavirus variants that appear in one country don't stay there for long -- but spread, and become global events in a matter of months or even weeks.

In short, if investors in the cruise industry are feeling nervous today, there's good reason for that. In recent months, the cruise industry seemed to have finally found its footing, with multiple operators predicting that significant portions of their fleets would soon be operating again at something approaching full capacity. Analysts who follow the industry had even predicted that 2022 would be the year that Carnival and Royal Caribbean turned profitable again, and that Norwegian Cruise would follow suit in 2023.

Now, all that good news has been turned on its head, and everyone's scared again.

(Excerpt) Read more at nasdaq.com ...


TOPICS: Business/Economy; Travel
KEYWORDS: cruiselinestocks
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To: Capt. Tom

How are these companies still in business?

Who in the hell would go on a cruise these days?

Having been on 6 cruises (Royal Caribbean, always) loving them all!

I would NEVER go on another cruise while COVID is in the world.

That is likely the rest of my life, since they refuse to admit that it is the VAXXINES that are prolonging this disease.

HERD immunity “is the ONLY WAY to be sure”.


21 posted on 11/26/2021 12:35:24 PM PST by faucetman (Just the facts, ma'am, Just the facts )
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To: bagster

😱

😆


22 posted on 11/26/2021 12:37:08 PM PST by Jane Long (What we were told was a “conspiracy theory” in 2020 is now fact. 🙏🏻 Ps 33:12 )
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To: Capt. Tom

bookmark


23 posted on 11/26/2021 1:26:21 PM PST by GOP Poet (Super cool you can change your tag line EVERYTIME you post!! :D. (Small things make me happy))
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To: faucetman

Did Alaskan cruise back in late August early September. Part of seeing inlaws after over a year due to Covid. Holland America, ship was only about 2/3rds full that was nice. Ports had only 2 ships in at most as opposed to the usual 6 or so that was nice. No real problems. Only bad was trying to get Covid test fit into 72 hour window and Port Security or TSA getting into my face to get mask on 10 seconds after Customs ask me to take it off to check passport ID. Oh and lost in casino as always.


24 posted on 11/26/2021 1:44:29 PM PST by nomorelurker
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To: Bernard
Isn't there a critical mass involved in being a major cruise line? I'm not familiar enough with the industry; are there small regional lines similar to regional airlines, or are all of the companies in the business comparable to United, Delta, American in the airlines?

The point being that if a cruise line needs to have X ships sailing to stay intact, then their emergency plans would reflect staying that size. Can a cruise line go from (pick some numbers) 100 ships to 25 and stay in business, or does he overhead overwhelm operations?

The three airlines you mention have filed for ch 11 Bankruptcy in the past.
American on Apr. 2, 2005 - Delta on Sept. 14, 2005 & on April 10, 2007 - United on Dec. 3, 2002,and on Feb. 1, 2006.

The Airlines get bailed out by us taxpayers.
The Cruise Lines are foreign flagged and don't get bailed out by us taxpayers.

That why I wonder how long they can last without some form of a bankruptcy.
It doesn't mean they have to go out of business , they have to trim down their fleets to continue to pay of their debts, or if they can't do that, go out of business. -Tom

25 posted on 11/26/2021 1:45:22 PM PST by Capt. Tom (.It's COVID 2021 - The Events, not us, are still in charge - )
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To: SamAdams76

I created and posted a meme on fakebook in March or April 2020. It said “When will this pandemic be over? When the people say it is.”

The only thing keeping the plandemic alive is fear and obedience to evil entities.


26 posted on 11/26/2021 1:58:43 PM PST by upsdriver (Go back and read the Q posts The picture becomes much clearer. Future does prove past.)
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To: bagster

Just the opposite! I am finding unbelievable bargain prices for cruises these days. The more restrictions are placed on cruise companies, lower the price for me.


27 posted on 11/26/2021 3:05:04 PM PST by entropy12 (President Trump was the best president in my life time of 81 years and counting..)
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To: George from New England

I am sailing next Monday on RCCL cruise. Right now requirement is 2 jabs, plus a negative PCR test done no more than 2 days before sailing. My PCR test is scheduled for Saturday morning.


28 posted on 11/26/2021 3:08:34 PM PST by entropy12 (President Trump was the best president in my life time of 81 years and counting..)
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To: Owen

“As for ignoring it all and living life, there’s no law of the universe that says a very special virus can’t arrive and chop off 50% of the global population in a year.”

Good point. We also can’t ignore that an asteroid could hit the Earth and wipe out 90% of humanity.


29 posted on 11/26/2021 3:17:29 PM PST by sergeantdave (Federal courts no longer have any standing in America. )
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To: Owen
It’s not vax or no vax that people should care about. It’s Captain Tripps people should care about.


30 posted on 11/26/2021 5:13:43 PM PST by bagster ("Even bad men love their mamas".)
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To: Capt. Tom

Better their stock than their ships sinking.


31 posted on 11/26/2021 5:16:01 PM PST by Veto! (Political Correctness Offends Me)
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To: entropy12
Just the opposite! I am finding unbelievable bargain prices for cruises these days. The more restrictions are placed on cruise companies, lower the price for me.

Well lucky for you then that [they] keep making people take the fake poison vax. More sick and dead people = profit $$$

Enjoy your cruise.


32 posted on 11/26/2021 5:19:29 PM PST by bagster ("Even bad men love their mamas".)
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To: Veto!
Better their stock than their ships sinking.

The person who touched off this panic has now come out with a different statement.

Health Minister Joe Phaahla stated during a press conference on Friday. "[At this stage], the scientists have found no evidence that this variant will create severe illnesses," the health minister noted. He also emphasized that no scientific evidence regarding an increased aggressiveness of the B.1.1.529 variant had been reported so far.

So it looks like a continuing back and forth is going to be in our future with this new virus. -Tom

33 posted on 11/26/2021 6:04:48 PM PST by Capt. Tom (.It's COVID 2021 - The Events, not us, are still in charge - )
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To: faucetman

“How are these companies still in business?”

Some people are sounding the alarm on their obvious Billions in debt. -Tom

https://www.nasdaq.com/articles/is-norwegian-cruise-line-holdings-nyse%3Anclh-using-too-much-debt


34 posted on 11/27/2021 9:27:27 AM PST by Capt. Tom (.It's COVID 2021 - The Events, not us, are still in charge - )
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