The Big Three Cruise Lines… all Sinking Today

30 September 2022… Cruise ship operator Carnival dropped 23.3% for the biggest decline among S&P 500 stocks after it reported a bigger loss for its latest quarter than analysts expected and revenue that fell short of expectations. Rivals Norwegian Cruise Line and Royal Caribbean Group slid 18% and 13.2%, respectively. Norwegian has fallen now 53%, Royal Caribbean 56%, and Carnival 59% year to date. All three on their websites right now advertising sales between 40% and 60% off.

Despite occupancy increase in the third quarter of 2022 by 15% from Q2, and with overall occupancy rates hovering around the 90% mark… Carnival showed a U.S. GAAP net loss of $770 million and an adjusted net loss of $688 million for the third quarter of 2022.

At the same time on Friday… New York Mayor Eric Adams was finalizing a deal with the Norwegian Cruise Line to house migrants on one of its massive cruise ships and dock it at Staten Island’s Homeport.

Adams wants to lease the luxury liner for at least six months and use it to house and process migrants before they enter the city’s shelter system, a source familiar with the matter said.

The migrants would be allowed to come and go while staying on the ship, the source said.

Preliminary estimates show the plan will be “cheaper” than erecting another tent city similar to the one the city plans to open in the Bronx at the Orchard Beach parking lot, the source said.

The tent city, now under construction, is expected to cost $15 million a month to operate.

In addition to the Norwegian Cruise Line deal, the source said City Hall was negotiating the possible use of another ship owned by the Estonian company Tallink, which was hired by the Estonian government to house Ukrainian refugees who fled their country following Russia’s invasion.