Carnival Brands Pause Cruises for Another Month
Four of Carnival Corp’s cruise lines said on Monday they would extend the suspension of all voyages by a month to May due to the coronavirus crisis that has worsened over the past few weeks.
Carnival Corp, also the operator of two coronavirus-stricken Princess cruises, has already temporarily suspended several of its ships due to concerns over the rapidly spreading COVID-19 crisis earlier this month.
“The impact of COVID-19 is affecting personal routines and businesses as well as placing significant travel restrictions around the world,” Simon Palethorpe, president of Cunard, said.
Carnival’s rival Royal Caribbean Cruises Ltd last week said it would return to service only on May 12.
Brokerage Berenberg said it expects the suspension of services by the cruise operators to last through July, with the entire summer season being meaningfully scaled back.
“We do not expect services to fully resume until the back end of 2021 and think that it is highly unlikely that all ships that were in service will return to service,” Berenberg said in a client note.
The brokerage lowered its price targets on Carnival, Royal Caribbean and Norwegian Cruise Line Holdings Ltd (NCLH.N) by about a third, sending their shares down between 5% and 10% on Monday.
Seabourn, Cunard and Holland America said in separate statements they would provide a 125% credit for future cruises to travelers impacted by the suspended voyages.
Theme park operator Walt Disney Co (DIS.N) and several other retailers have also extended temporary closures as the health crisis worsens.
Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel