Carnival and Royal Caribbean Climb 5%, Norwegian Cruise Line Rises 4% as Oil Prices Drop

Carnival Corp. (CCL) set up a $2 billion commercial paper program to issue short-term, unsecured notes guaranteed by Carnival UK. The notes, maturing within 180 days, will fund general corporate needs, with the company's revolving credit facility serving as a liquidity backstop. The program was established on November 3, 2026, according to an SEC filing.

Royal Caribbean (RCL) agreed to buy half of Sandals and Beaches Resorts for $3B. Over the past year, RCL's stock moved 1.6x the S&P 500's daily swings, with 47.8% volatility vs. 12.8% for the index. Its 5-year annual return was 29.6%, including dividends, with 48.6% volatility. Q3 2026 revenue rose 8.8% YoY, and management raised its full-year forecast.

Royal Caribbean Cruises (RCL) reported Q3 earnings with revenue up 9% YoY and adjusted EPS of $6.57, beating expectations. Management raised full-year guidance, citing strong bookings and demand. Key risks include fuel costs and geopolitical pressures. The company also announced a $3B investment in Sandals Resorts, expected to be accretive to earnings. Capacity and revenue growth are forecasted for 2026 and 2027, with strong cash flow and guest loyalty driving performance.

Norwegian Cruise Line Holdings (NCLH) is reducing included airfare for guests and crew to boost revenue and cut costs, expecting $100 million in annual benefits. CEO John Chidsey and CFO Mark Kempa said the changes will support top-line growth and reduce expenses, with savings phased in from 2026 to 2028. The move is part of a broader strategy to minimize discounting and encourage earlier bookings.

Royal Caribbean (RCL) reported Q3 revenue of $5.59B, in line with estimates, and adjusted EPS of $6.57, beating expectations. Adjusted EBITDA was $2.54B, also surpassing forecasts. The company raised its full-year adjusted EPS guidance to $17.90. Growth drivers include increased onboard spending, booking acceleration, and loyalty program expansion. RCL's acquisition of a 50% stake in Sandals and Beaches Resorts aims to expand its all-inclusive offerings.

Norwegian Cruise Line Holdings reported Q3 2026 earnings with adjusted EPS of $1.12, beating guidance. 2027 sailings are priced higher but less booked, especially in the first half. The company is shifting to a baseloading pricing model. Regent Seven Seas canceled select Suez Canal voyages due to ongoing security threats. The new ship, Seven Seas Prestige, will be delivered late December 2026.