During the quarantine, the global travel scene held its breath as forecasts warned of a stubborn rebound that might not arrive. Cruise travel, one of the hardest hit sectors, faced the challenge of moving thousands of people safely in confined spaces for days on end. The four largest cruise lines — Carnival, Royal Caribbean, Norwegian Cruise Line and MSC Cruises — together controlled about 90 percent of the market. In 2020 they faced a 70 percent drop in profits and similar losses in the stock market, with MSC Cruises not included in that ranking. Three years later, the cruise industry has moved past the worst losses, delivering a strong rebound. The International Association of Cruise Lines (CLIA) projects passenger volumes reaching 31.5 million in 2023, a gain of 106 percent versus 2019. Financial results from the second quarter follow a pattern of record highs as the sector recovers.
With strong global tourism data, Royal Caribbean beat earnings expectations and still anticipated further gains. The company reported record second quarter revenues of $3.5 billion and a net income of $458.8 million. In 2019 the net profit stood at $472.8 million. CEO Jason Liberty noted that pricing power remained robust and demand continued to climb beyond prior periods as investors were briefed.
Meanwhile Carnival, the largest cruise operator worldwide, released all-time highs in future cruise bookings while recording $4.9 billion in revenue in the second quarter of 2023. The quarter also showed a net loss of $407 million. The leadership emphasized ongoing efforts to reduce four years of inflationary pressure. The pandemic era inflicted losses exceeding 13.7 billion euros for the group in the first two years, and operations could not resume until the latter part of 2021.
Norwegian Cruise Line Holdings has gradually recovered from the pandemic’s early red numbers, though it remains below 2019 levels. The company reported $86 million in the second quarter of 2023, compared with $1.7 billion in 2019, and net income of $137 million, about half the figure from four years earlier. The improvement is supported by a 19 percent price uptick versus 2019 and bookings for the next year that are 60 to 65 percent of plan. Demand remains resilient, with more customers choosing cruises and renewing at higher prices.
MSC Journeys, a leading operator in Spain, also traces a positive trajectory. Revenue rose to €2,645 million in 2022, and the group expects to reap pre pandemic benefits this year. Three years earlier, turnover fell by 78 percent to €705 million, reflecting the deep impact of the crisis.
record revaluations
Royal Caribbean stock traveled a volatile path but has rebounded strongly. After trading around $23.81, the share price climbed to about $98.65, and since the start of 2023 the stock gained more than 100 percent on the major index as reserves rose roughly 10 percent versus pre pandemic levels.
Carnival Corporation followed a similar recovery arc, though its share price remains below pre pandemic marks. The stock has more than doubled from a recent low but remains below peak levels. Norwegian Cruise Line has seen steadier gains, with shares up and trading in the mid-teens as investor interest returns.
Spain, cruise port
News from Spain highlights a strong summer for tourism and cruise traffic. Data from Puertos del Estado shows that in the first half of 2023 a large portion of the 2019 levels were surpassed, with passenger throughput reaching about 4.94 million across the country. Around 2,070 ships operated during this period, reflecting an uptick of roughly 8.4 percent from four years prior.
Barcelona remains a top port of call for cruise guests. The Balearic Islands, Las Palmas, and Santa Cruz de Tenerife also saw substantial passenger volumes, maintaining Barcelona’s status as a preferred port. In CLIA’s annual ranking, Barcelona consistently places among the top ten most visited cruise ports, underscoring its enduring appeal to travelers.