CEO Gaffe of the Week: Carnival Corporation (CCL)

What’s more, this incident is likely to spark another wall of worry in the cruise line sector. The Walt Disney Company (NYSE:DIS), which operates a line of cruise ships, escaped largely unscathed during 2012’s Concordia incidents because it had much of the year already pre-booked. Possessing a premier name in the entertainment industry, Disney’s brand does most of the talking without the need for much advertising.

The same may not be said for Royal Caribbean Cruises Ltd. (NYSE:RCL) or the recently public Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), better known as Norwegian Cruise Lines. Royal Caribbean saw an immediate drop-off in bookings following the Costa Concordia incident and it could likely see negative repercussions from the Triumph incident — at least in the interim. NCL actually posted solid full-year results on Monday, but could find the seas turbulent given that the midpoint of its 2013 guidance ($1.30) places it at a lofty 23 times earnings. It’s very difficult to ascertain how much Carnival’s woes could affect NCL’s bottom line, and, as we know well, the market hates uncertainty.

Thankfully for families and friends as well as those aboard, the Triumph docked in Mobile, Ala., late last night. As new details emerge of the conditions aboard the ship and management’s response, I may be forced to eat some of my words. However, given Arison’s dubious track record from prior incidents, I have a suspicion his CEO tenure is the next thing to be cast a life preserver if this keeps up.

The article CEO Gaffe of the Week: Carnival originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. He is merciless when it comes to poking fun at dubious CEO antics. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Disney. Motley Fool newsletter services have recommended buying shares of Disney.

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