Seatrade Cruise News is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Carnival puts hurricane impact at under $10m but shares sink 20%

PHOTO: DAVID MARK/PIXABAY CRUISE_Key_West_hurricane.jpg
Stormy time for Florida shores and CCL shares
Carnival Corp. shares sank 20% Friday morning even as the company painted an upbeat picture for 2023 and played down the impact of hurricanes.

CFO David Bernstein noted Carnival had canceled 'a couple' cruises but he estimated 'probably less than $10m impact' so far from hurricanes Fiona and Ian together.

He also said that in a 'normal' year there would be some hurricane impact.

New 52-week low

CCL hit a new 52-week low, $7.01.

With cruising still in pandemic recovery mode, jitters about the economy and, now, Vladimir Putin escalating the war in Ukraine, it's far from a normal year. And, with all that, it's hard to tell if hurricanes are making customers and investors nervous.

Wave season impact?

Asked on Carnival's earnings call about the potential for hurricanes to impact wave season, CEO Josh Weinstein said there was no impact on current bookings, adding:  'At this point in time we don't see anything coming out of these hurricanes that would have any type of significant impact at all on our upcoming wave season.'

That's the extent of the hurricane talk on the call.

But at this fragile time, tragic images of Ian's impact as one of the strongest storms ever to hit Florida, the nation's leading cruise state, can't help. And having left a path of destruction through Florida, Ian on Friday was 'accelerating toward the South Carolina coast' with 'life-threatening storm surge and damaging winds arriving soon,' according to the National Hurricane Center.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish