Cruise lines topped the market in the second quarter.
Why it matters: The soaring sentiment buoying cruise operators suggests investors don't expect the American consumer to pull back on spending.
The latest: Earlier this week, Carnival Cruise reported that fiscal Q2 revenues doubled compared with last year, nearly hitting $5 billion — the highest level since 2019.
- The rise in sales helped it cut its losses by nearly 80%.
What they're saying: Captains of the cruise industry say that despite the still-dour mood for many in the U.S. and globally, consumers are confident enough to book trips and shell out cash freely onboard.
- "In North America, the booking curve is as far out as we have ever seen it," Carnival CEO Josh Weinstein told analysts earlier this week.
- "Onboard revenues were, once again, off the chart this quarter," he added.
Reality check: It's worth remembering that the cruise industry remains deeply beaten up from the total shutdowns of the COVID era — and the three operators charted above are all still posting losses.
- Even after the remarkable rally the stocks enjoyed in recent months, both Carnival and Norwegian have share prices 60% lower than at the end of 2019.
- Royal Caribbean, the outperformer, is still down more than 20% from pre-crisis levels.
