Perhaps no industry was hit harder by the COVID-19 pandemic than the cruise industry, which saw companies like Carnival (NYSE: CCL) ground nearly all of its cruise operations for much of 2020 and 2021. While the worst of the crisis is over, the scars still show on its balance sheet and income statement. Let's dig deeper into why Carnival could face another existential threat before fully recovering from the first one. Here are three reasons Carnival stock owners might want to sell.

In Carnival's most recent earnings report, management strikes a hopeful tone. According to CEO Josh Weinstein, the company plans to close the gap with 2019 and return to profitability. The remarks come as it relaxes vaccine and testing requirements for voyages lasting under two weeks. 

But while third-quarter revenue jumped almost 700% year over year to $4.3 billion, this number is still down significantly from the $6.5 billion Carnival generated in the corresponding period of 2019. Closing the gap will be easier said than done because, in 2020 and 2021, the company sold 19 ships to raise the capital needed to sustain its operations. And with an occupancy rate of 90% (as of August), it might have a limited runway for growth until it runs out of free capacity.

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Source Fool.com