Cruise line stocks are making waves on Wall Street, surging after months of choppy waters. Carnival (CCL) has rebounded more than 60% from April lows, Norwegian Cruise Line (NCLH) has climbed 50%, and Royal Caribbean (RCL) has soared over 80%—marking one of the industry’s strongest rallies in years.
Analysts credit several factors, including President Trump’s recent trade deals, which brought economic clarity and boosted consumer confidence. Cruise operators report record bookings and revenue, with Norwegian and Royal Caribbean both posting historic second-quarter earnings. Norwegian CEO Harry Sommer said July is on pace to set another record, fueled by an improved macroeconomic environment and “close-in demand,” or last-minute bookings that allow prices to stay high.
Carnival also joined the wave with $6.3 billion in Q2 revenue, reflecting the industry’s broader rebound. Years of investment in new ships, themed voyages, and exclusive destinations are paying off as cruises attract not only loyal retirees but also first-time travelers and younger vacationers.
Demand is booming. The number of cruise passengers is projected to jump from 29.7 million in 2019 to 37.7 million by 2025. Royal Caribbean reports that millennials and Gen Z now make up about half its customer base, signaling a generational shift.
Cost also plays a big role. “Cruise is a good value proposition,” said Andrew Didora, senior equity analyst at Bank of America. “It’s one of the cheaper forms of travel, and they’re gaining share in the vacation market.” JPMorgan predicts the cruise industry’s slice of the $1.9 trillion global travel market will nearly double to 3.8% by 2028.
With record revenues, younger demographics climbing aboard, and economic tailwinds at their back, cruise stocks may have plenty of smooth sailing ahead.
