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The Carnival Cruise Line is canceling and delaying further trips to the U.S. at a time when new cases of COVID-19 are averaging around 170,000 a day in the country amid a messy distribution of vaccines.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| CCL | CARNIVAL CORP. | 19.22 | -1.00 | -4.95% |
Carnival’s planned seasonal service from San Diego has been suspended until further notice and cruises scheduled through April 2023 have been canceled. Some trips from California to Hawaii will continue, but instead they will sail from Long Beach, the company said.
CARNIVAL CORP. SAYS YOU BOOK MORE CRUISES FOR 2022 THAN 2019
Carnival began warning travelers about cancellations on Friday.
The trips that were planned on three ships – the Magic, Paradise and Valor – are being postponed until November, the cruise company said.
“Like so much about the current global situation, we are adapting our plans as circumstances evolve and are able to confirm alternatives,” said Christine Duffy, president of Carnival Cruise Line, in a statement prepared on Monday.
Carnival Cruise Line is canceling and delaying further trips to the U.S. at a time when new cases of COVID-19 are averaging around 170,000 a day in the country amid a messy distribution of vaccines.
Miami’s Carnival Corp. shares fell 5% on Monday. Those of rival operator Royal Caribbean also fell 5%, while Norwegian Cruise Line fell 2.5%.
The United States’ Center for Disease Control suspended its request to ban shipping to the industry on October 30, but is also warning people to avoid all cruise travel due to the risk of infection. The CDC allows for a phased restart if the industry meets the test and safety requirements for the crew.
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Cruise companies are eagerly awaiting CDC guidance for the next phase of their reopening plan, which would allow short test trips with volunteers. The CDC said on Monday that it hopes to publish further guidance in the coming weeks.
Truist Securities analyst Patrick Sholes said reservations for future cruises now exceed cancellations for the first time since March. But he still lowered his earnings expectations for cruise lines until 2022, believing that further delays are likely.
Travel agencies are now predicting that July will be the best scenario for a gradual return to cruises in North America, Sholes said last week, but that a return in September or October is more likely.
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This could force the cruise operator to raise additional funds to stay afloat, wrote Sholes.
Carnival Corp. lost more than $ 10 billion last year with the pandemic sweeping the globe, but said this month that it would have enough money to survive until 2021, even without revenue.