RE: Red Sea re route31 Jan 2024 11:59
Two things.
1. The 8c drop is CCL posturing. They are re-routing the ships, not cancelling the whole cruises and leaving the ships afloat. So they will still get revenue, and the difference in revenue for 12 sailings across all their fleet 8c drop on EBIT. Additionally, the Red Sea routes are normally cheaper than most of the other cruises as they are more re-positioning as well.
2. The drop from the highs was after the share went up after the announced.
The announcement happened at 2.15pm, the shares opened and we jumped to £12.20 after US trading, and then it slowly dropped, exactly like Saga did as the hours went on. If the announcement was the concern, we would have had a drop upon US opening at 2.30pm not a 4% gain.
Again, however, an 8c hit on full year profits because of 12 sailings that are being re-routed, noting they have 120 ships, which does about 50 sailings each a year, so 12 / 6000 sailings is an 8c drop, despite the 12 actually still sailing.......
Come on............