Page 6 - 2023 Cruise Industry News Annual Report

INTRODUCTION

PROMISING YEAR

As 2023 got underway, cruise companies tended to report forward
booking volumes higher than historical averages and at higher

prices, boding well for their return to profitability.

eanwhile, being singled out and shut down dur- And yet, with a strong market response, 2023 bears
Ming the pandemic, the companies had to take all the hallmarks of a promising year.
on significant debt in order to stay afloat.
So now the immediate goal is to address and pay In Perspective
down debt maturities as ships again are generating To get the proper picture, the current situation should
positive cash flow. be looked at in a historical perspective.
Since its modern-day launch out of Florida in 1966,
Not An Easy Return the industry has grown to a fleet of more than 400 ships
The road back to service has not been easy. Ships sailing globally, with several start-ups having joined in
had to be brought out of layup, crew had to be hired recent years and others ready to launch.
and transported to the ships, and ports had to open up, Since first going public in the late 1980s, the publicly
while passenger markets were to various degrees af- traded cruise companies have for the most part repor-
fected by COVID concerns, anxiety over the Russian in- ted net profits every quarter and every year despite the
stigated war in Ukraine, inflation and recession worries. Achille Lauro hijacking of 1985, the stock market crash
In addition, the cruise lines had to deal with supply of 1987, the dotcom bubble burst of 1999, 9/11 of 2001,
chain issues and higher fuel prices. SARS of 2003, the recession of 2008, the Costa Concor-
If not a perfect storm, the return to service has over- dia grounding of 2012, and a variety of geopolitical is-
come some formidable obstacles. sues affecting various regions around the world.

10 Cruise Industry News | 2023 Annual Report „„„„„„