Carnival Corp Shares Extend Slump After Britain's P&O Cruises Cancels 2020 Sailings

Carnival's U.K.-based P&O Cruises extended its cancellation of sailings from Southampton, as well as the Caribbean, until at least late January.
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Carnival Corp.  (CCL) - Get Report shares slumped lower Thursday after its U.K. division cancelled all remaining sailings to the Caribbean for the remainder of the year.

P&O Cruises said all sailings from its Southampton, England base would be cancelled until at least February, while Caribbean cruises have been shuttered until at least the end of January. 

The news comes less than 24 hours after Carnival said it expects a third quarter loss of around $3 billion, but noted that second half bookings for its cruise ships were ahead of their historic averages, as customers return to the travel sector following months of coronvirus lockdowns in key markets around the world.

"With evolving restrictions on travel from the UK, unfortunately it is necessary to cancel these itineraries," said P&O Cruises president Paul Ludlow. "These further cancellations vary according to ship as well as complexity and length of itineraries, advice and guidance regarding ports of call and current air availability for fly/cruises."

"We are continuing to monitor the overall situation closely and will certainly reintroduce cruises should the opportunity arise and it is feasible to do so," he added.

Carnival shares were marked 1.7% lower in early trading following the P&O statement to change hands at $16.20 each, a move that extends the stock's year-to-date decline to around 70%.

Carnival said in a Securities and Exchange Commission filing Tuesday that its loss for the three months ending in August is expected to be $2.9 billion on a U.S. GAAP basis, a figure that includes non-cash charges of around $900 million. 

Its third quarter cash burn rate was pegged at $770 million, the company said, a figure it expects to slow to $530 million over the three months ending in November.

Carnival is expected to publish its formal third quarter earnings report on September 24.