Cruise Lines Feel Oil-Price Fears

It ought to be smooth sailing for cruise operators. Passenger bookings are the busiest in four years, fares are surging for summer and fall trips, and fewer new ships are being launched — meaning cruise companies have greater freedom to raise prices.

But you wouldn’t know that from the share prices of cruise-industry giants Carnival Corp. and Royal Caribbean Cruises Ltd. Despite a recent recovery, both stocks are slumping, with Carnival down about 5 percent and Royal Caribbean down about 13 percent since the start of the year.

The problem for cruise stocks is that volatile crude-oil prices have soured investors on nearly every industry that consumes fuel. But cruise lines are being unfairly tarnished. Now should be a smart time for investors to climb aboard.
NapaNews.com