After surviving the stormy seas of the pandemic, the cruise shipping industry was beginning to look forward to calmer conditions. The industry seems to be staging a turnaround by banking on pent-up demand and easing travel restrictions. More than 75% of Cruise Lines International Association’s (CLIA) oceangoing member cruise lines’ capacity has returned to service, with almost all projected to be back in the water by late summer.
However, most major cruise shipping companies have reported losses in their latest quarterly results. Many companies went into debt to tide over the halt of business during the pandemic. Moreover, due to the Fed's recent interest rate increases, borrowing costs for these companies have increased. As a result, top-line growth has not been reflected in the bottom line.
