Cruise industry stocks had another rough day. In Wednesday trading, shares of Norwegian Cruise Line Holdings (NASDAQ:NCLH) closed 3% lower, Carnival Corporation (NYSE:CCL) dropped 3.1%, and Royal Caribbean (NYSE:RCL) — the one cruise line that performed best yesterday — did worst of all today, sinking 3.9%.
Indeed, over the course of the day, Royal Caribbean was the consistent underperformer, even falling more than 5% at one point.
So what’s ailing the cruise industry this time? To put it simply: cash flow.
Tallying up the latest financial results posted by all three of the major publicly traded cruise lines this morning, industry information site CruiseIndustryNews.com (CIN) broke down the current rates of “cash burn” — negative free cash flow — for each stock. Here’s how much they’re burning at last count:
- Carnival Corporation, the biggest cruise company, is burning the most — $530