The cruise industry, battered by the Covid-19 pandemic, has made a remarkable comeback. Carnival Corporation & plc, one of the major players in the industry, reported record-breaking revenues in late December 2024. The CEO, Josh Weinstein, highlighted the strong demand environment that led to surpassing their initial 2024 guidance by $700 million. The industry faced significant challenges during the pandemic, with cruise companies accumulating high levels of debt to stay afloat. However, by mid-2022, when the CDC lifted Covid-19 restrictions, the industry began its recovery.
As the industry rebounds, cruise companies are investing in new ship orders to meet the increasing demand. Royal Caribbean Group and Carnival Corporation have placed orders for new vessels, including LNG-powered ships to minimize environmental impact. Norwegian Cruise Line Holdings is also expanding its fleet with new ships scheduled for delivery in the coming years. Despite the industry’s growth, companies are mindful of balancing the capital costs of new ships with managing their outstanding debt to ensure financial stability.
Disney Cruise Line, part of Walt Disney Company, and MSC Cruises are also expanding their fleets with new LNG-powered vessels. Disney Cruise Line has announced multi-ship orders with deliveries scheduled up to 2031. MSC Cruises, a competitor to the major players in the industry, is set to introduce new LNG-powered ships to cater to the growing demand for cruise travel. As the cruise industry continues to recover from the impacts of the pandemic, companies are strategically investing in new ships to meet the evolving needs of passengers.
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