Days earlier, several cruise ships were also seen "hovering" above the waters off the coast of Paignton, Devon The phenomenon - known as Fata Morgana - is created when the sun heats up the atmosphere above either the land or the sea. 5 A layer of warmer air sits on top of a layer of cold air, causing the light from the ship to bend and making colours blend together. For a Fata Morgana to appear, the atmospheric conditions have to be just right. It starts with a cold air mass close to the ground or surface of the water that is topped by a warm layer of air higher in the atmosphere.