Market Overview

Norwegian, Carnival, Royal Caribbean Extend Losses As CDC Furthers Cruise Sail Ban

Norwegian, Carnival, Royal Caribbean Extend Losses As CDC Furthers Cruise Sail Ban

The shares of Norwegian Cruise Line Holdings Ltd (NYSE: NCLH), Carnival Corp. (NYSE: CCL), and Royal Caribbean Cruises Ltd (NYSE: RCL) continued to dip in the after-hours session Thursday, as the Centers For Disease Control and Prevention extended its ban on cruise sailing in the United States.

What Happened

In an order Thursday, the CDC extended the suspension of "passenger operations on cruise ships with the capacity to carry at least 250 passengers in waters" through September 15.

"If unrestricted cruise ship passenger operations were permitted to resume, passengers and crew on board would be at increased risk of COVID-19 infection and those that work or travel on cruise ships would place substantial unnecessary risk on healthcare workers, port personnel and federal partners, and the communities they return to," the federal agency said in a statement.

According to the CDC data between March and July, there have been 2,973 coronavirus or coronavirus-like illnesses on cruise ships since March, including 34 deaths.

Why It Matters

Cruise companies have been voluntarily delaying resuming their operations as well, with the risk of coronavirus spread remaining especially high in contained spaces.

Norwegian announced last month it was suspending its voyages through October, and rival Carnival has also suspended its operations through mid-September at least.

Miami-based Norwegian earlier in the day said it intended to raise $925 million via debt offerings and $250 million via stock offerings, as it looks to keep the business afloat during the pandemic.

Price Action

Carnival shares traded 1% lower in the after-hours session at $15.78 on Thursday, after closing the regular session 9.7% lower at $15.78.

Royal Caribbean was down 0.4% at $53.94. It had closed the regular session 7.6% lower at $53.94.

Norwegian dropped 0.7% further from the 15.6% lower close at $15.61 in the regular session.


Related Articles (CCL + NCLH)

View Comments and Join the Discussion!

Posted-In: CDC CoronavirusGovernment News Regulations Health Care Legal General Best of Benzinga