War and cruising are a poor mix, as cruise lines are experiencing in the Mediterranean. As expected, bookings are off and prices are down. A spokesperson for Carnival Corporation said that second quarter earnings could be impacted as much as six to eight cents per share.

The impact on cruise companies is proportional to their exposure. According to Cruise Industry News' estimates, P&O, including Princess Cruises, has 19 percent of its fleet capacity in Europe in 1999; Carnival Corporation bas 16 percent; Norwegian Cruise Line bas 11.5 percent; Royal Caribbean International bas five percent; and Premier Cruises has 20 percent.