Cruise Stocks Hit Choppy Water on Disappointing Carnival Outlook
- Net yield, a key benchmark, falls short of analysts’ estimates
- Forecast suggests that raising fares may be harder in 2019
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A disappointing forecast from Carnival Corp. signaled that the world’s largest cruise line is struggling to raise fares, sending a wave of pessimism across the industry.
The company expects its 2019 net yield -- a key benchmark -- to climb just 1 percent when accounting for currency fluctuations. Analysts projected 2.4 percent, according to Consensus Metrix. That sent the stock on its worst tumble in nearly three months, pulling down Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. as well.