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Cruise Line Stocks Fall Again; Carnival Suspends Operations Through May

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Cruise Line Stocks Fall Again; Carnival Suspends Operations Through May

Carnival Corp (NYSE: CCL) shares were capsizing Monday after the cruise line said it won't sail the seas until at least May 12 — a full month later than previously expected.

Carnival Guests Given Refund Options

Carnival said in a series of press releases that its brands will pause operations. In one release, the Holland America Line brand said all departures scheduled through March 14 are now canceled. Guests who booked a cruise will be given the option of a full cash refund or a gift card worth 125% of their booking value on top of an additional $250 shipboard credit.

Similar deals were offered by Seabourn, Cunard and other Carnival brands.

Holland President Says 'Temporary Standstill' Necessary

"As the world addresses global health concerns, travel has come to a temporary standstill as communities take necessary precautions to protect themselves," Orlando Ashford, the president of Holland America Line, said in a statement.

"All of us at Holland America Line are wishing everyone the best during this unprecedented time."

What's Next For Carnival

The Cunard brand has been "sailing for 180 years," and the company is looking forward to "many more," President Simon Palethorpe said in a press release.

"We will get through these tough times together and look forward to welcoming our guests back on board again soon, when the time is right."

The stock was down 12.49% at $12.61 at the time of publication Monday.

Peers were also trading lower, with Royal Caribbean Cruises Ltd (NYSE: RCL) down 17% and Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) down 13%.

Related Links:

The Outlook For Cruise Stocks As Governments Worldwide Issue Travel Warnings

Cruise Line Analyst Jumps Ship On Norwegian Cruise, Royal Caribbean Amid Coronavirus Cancellations

 

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