Market Overview

Norwegian Plummets 12% As Company Says Cruises Won't Take To The Sea For Another Few Months

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Norwegian Plummets 12% As Company Says Cruises Won't Take To The Sea For Another Few Months

The shares of Norwegian Cruise Line Holding Ltd. (NYSE: NCLH) dipped nearly 12.4% in the after-hours session on Tuesday.

What Happened

The dip followed the Florida-based company's announcement that it is extending the suspension of its cruise voyages to October. Certain voyages in October, including Canada and New England trips, have also been canceled.

Norwegian said Seattle-based Alaska voyages set to take off in September are an exemption.

The cruises were earlier expected to be in the sea by August, following the ease of lockdown restrictions related to the novel coronavirus (COVID-19) pandemic.

Why It Matters

Rival Carnival Corp.'s (NYSE: CCL) Princess Cruises earlier this month also announced its operations would remain suspended through mid-September at least, Reuters reported.

The travel and leisure industry has been hit hard by the pandemic, as operations remain suspended for most of the year. A number of cruises were stuck at sea during the early days of the pandemic in February as countries fearing an outbreak refused them permission to dock.

Price Action

Norwegian shares closed 4.8% higher in the regular session at $20.96 on Tuesday. The shares were down about 12.4% in the after-hours session at $18.37.

Carnival shares dropped 7.1% in the after-hours session after closing the regular session 5% higher at $20.42.

 

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