Royal Caribbean Extends Fleet Suspension Through May 11

Royal Caribbean Cruises is extending the suspension of its fleet through May 11 from April 10.
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Royal Caribbean Cruises  (RCL) - Get Report said Wednesday that it had extended its suspension of its fleet through May 11 from April 10.

The cruise industry has been hit hard by the coronavirus outbreak, but on Tuesday Royal Caribbean and other cruise-line operators saw their shares rise dramatically and the trend continued into Wednesday.

At last check Royal Caribbean surged 4.8% to $36.13; the stock earlier traded as high as $42.

Carnival Corp.  (CCL) - Get Report was off 1.9% at $13.42 and Norwegian Cruise Line Holdings  (NCLH) - Get Report  was up 4.7% at $14.40.

The majority of the voyages will resume May 12, Royal Caribbean said via Twitter. 

Due to announced port closures, the company said that Voyager of the Sea sailings will resume in June, while Alaska, Canada, and New England sailings will start up in July 1

"We know this is disappointing," the company said in a statement. "Extending our fleet suspension is an incredibly difficult decision to make" but "it's a decision made with the best interests of our guests, crew and staff at heart."

On Tuesday, Royal Caribbean said it had obtained a $2.2 billion secured term credit line to bolster its liquidity in response to the industrywide shutdown caused by the coronavirus.

Including this new financing, Royal Caribbean said it had more than $3.6 billion of liquidity, made up of cash deposits and its current undrawn revolving credit facilities.

The company said it also had committed financing for all its new ships on order.

'"This is a period of unprecedented disruption for the cruise industry," Jason T. Liberty, executive vice president and chief financial officer, said in a statement.