Core Insights - The cruise industry is entering the third-quarter reporting season with strong demand but rising cost concerns, particularly for 2026 [1] - Bank of America Securities analyst Andrew G. Didora anticipates a robust 2025 for cruise lines, while cost pressures are expected to dominate discussions for 2026 [1] Industry Overview - Recent data indicates that cruise spending has accelerated, with a 10% increase in the third quarter of 2025 compared to a 3% rise in the second quarter [2] - Carnival Corp reported strong onboard spending and resilient late bookings, contributing to positive sentiment in the industry [2] - Airlines are also experiencing robust premium revenue trends, which are expected to support revenue growth for major cruise lines like Royal Caribbean, Norwegian, and Viking in the upcoming quarters [3] Company-Specific Insights Royal Caribbean Cruises - Royal Caribbean is set to report earnings on October 29, with Didora forecasting an EPS of $5.65, slightly below the Street's expectation of $5.68 [4] - Projected third-quarter net yields are expected to rise by 2.8%, while net cruise costs excluding fuel are anticipated to increase by 6.4% [4] Norwegian Cruise Line - Norwegian Cruise Line's third-quarter net yield and non-fuel unit costs are expected to align with guidance at 2.0% and 0.7%, respectively, leading to an EPS of $1.16 [5] - For the fourth quarter, net yields are projected to increase by 4.4%, with non-fuel unit costs rising by 0.6%, resulting in an EPS of $0.32, above the consensus of $0.29 [5] Carnival Corporation - Carnival Corporation's estimates have been modestly raised following a $1.25 billion unsecured debt issuance, with 2026/2027 EPS now projected at $2.37/$2.61, reflecting lower interest costs [6] Viking Holdings - Viking's third- and fourth-quarter EPS estimates are maintained at $1.19 and $0.56, slightly above the Street's expectations [8]