Carnival Cruise, Continental Spurn Mexico

Carnival Cruise Lines(CCL) said, on Friday, that it will continue to avoid Mexican ports due to the swine flu outbreak -- yet another example of the virus slowing travel bookings and forcing many airlines and cruise lines to revise and suspend voyages.

The cruise line modified itineraries to avoid the country until May 11, one week longer than it previously announced. Most ships are stopping at other ports.

Carnival said it is offering refunds in the form of future cruise credit to customers who do not want to sail on the modified itineraries.

Shares of rival Royal Caribbean (RCL) closed down 5% to $14, as investors wait to see what steps the company will take.

Continental Airlines(CAL) also announced earlier today that it will temporarily pare down the number and size of U.S. flights to Mexico. Continental will cut capacity to Mexico by 50% starting Monday, with about 40% fewer departures.

AMR(AMR), parent company of American Airlines, the second-biggest U.S. carrier to Mexico behind Continental, said it is closely monitoring demand on U.S.-Mexico flights but hadn't reduced service. Delta Air Lines also said it was monitoring the flu situation.

Southwest Airlines(LUV) doesn't fly to Mexico, but its chief executive said bookings in the past week have dropped in response to concern about flying.

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