Wednesday, January 18, 2012

Analysts mull impact of accident on cruise sector

NEW YORK (AP) — Shares of cruise operators declined on Tuesday, with analysts questioning whether the capsizing of a Carnival Corp. vessel would hurt travel demand.
The Friday night capsizing of the Costa Concordia has left at least 11 people dead, according to reports on Tuesday.
Greg Badishkanian of Citi Investment Research said in a client note that the accident could be an overhang on Carnival and rival Royal Caribbean Cruises Ltd., as it took place during the cruise industry's busiest booking period of January through March.
Badishkanian said that cruise booking volumes likely fell 6 percent to 10 percent over the past few days, but stressed that the decline is within normal day-to-day volatility.
Carnival fell 13.9 percent to $29.51 in midday trading, while Royal Caribbean slipped 4.1 percent to $27.57.

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