The cruise shipping industry was severely affected by the COVID-19 pandemic, and many companies in this space had to increase their debt burden to tide over the halt of operations. Despite the high pent-up demand and easing of travel restrictions, rising inflation, higher fuel costs, and a potential recession will likely dampen the industry’s growth.
Increased borrowing costs due to the rising interest rates further exacerbate these headwinds. Therefore, despite the rise in occupancy levels, cruise liners’ return to profitability could be hindered.
