Carnival Extends Halt to U.S.-Origin Cruises Through January

Carnival shares fell on Wednesday after the cruise giant extended its suspension of U.S.-originated cruises through January.
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Carnival  (CCL) - Get Report shares fell on Wednesday after the cruise giant extended its suspension of U.S.-originated cruises through January.

The Miami company's' shares recently traded at $17.83, down 1.2%. The shares had dropped 64% so far this year through Tuesday. The coronavirus shuttered its ships and kept would-be cruisers at home.

“As it continues to build and implement its plan to meet the requirements of the Framework for Resuming Cruise Ship Operations Order issued on Oct. 30 by the U.S. Centers for Disease Control and Prevention, Carnival Cruise Line notified guests and travel agents that it has canceled additional cruises for the first part of 2021,” the company said in a statement.

Carnival already had canceled cruises through December. The shutdown began in March. 

In addition to the suspensions through Jan. 31, the hiatus will continue through Feb. 28 in Baltimore, Charleston, S.C., Jacksonville, Fla., Long Beach, Calif., Mobile, Ala., New Orleans and San Diego. And in Tampa, Fla., the Carnival Legend is grounded through March 26.

“Carnival is in the process of building a gradual, phased-in approach to resume guest operations, which will focus initially on Miami and Port Canaveral, to be followed by Galveston, [Texas,]” the company said.

“Consistent with CDC protocols, Carnival Horizon arrives in Miami this week, and Carnival Breeze will be the next ship back to the U.S. 

"In total, 16 Carnival ships are currently following the CDC process for an eventual resumption of guest service in the U.S. in 2021.”

In a report earlier this month, Morningstar analyst Jaime Katz wrote, “Given that significant uncertainty still remains surrounding when passenger cruises will resume, we plan no change to our $20 fair value estimate.”

Also on Tuesday, Norwegian Cruise Line  (NCLH) - Get Report launched a secondary offering of 40 million shares at $20.80 each.