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Carnival Shares Drop As Princess, Cunard Lines Extend Cancellations To Next Year And Beyond

Carnival Corporation (NYSE: CCP) shares extended losses in the regular and after-hours sessions Tuesday as the company-owned Princess Cruises announced the cancellation of its cruises through next year, citing health and government restrictions on border and p

Benzinga · 08/26/2020 11:37

Carnival Corporation (NYSE:CCP) shares extended losses in the regular and after-hours sessions Tuesday as the company-owned Princess Cruises announced the cancellation of its cruises through next year, citing health and government restrictions on border and port access.

What Happened: Cancellations were allowed for the company’s Island Princess 2021 World Cruise and Pacific Princess 2021 Circle South America sailing, Princess said in a statement.

Guests booked on these cruises are eligible to receive a credit equivalent to 100% of the fare paid and an additional credit equivalent to 25% of the cruise fare paid, the cruise line announced.

Why It Matters: Carnival has also canceled sailings of its Cunard line ships Queen Elizabeth and Queen Mary 2 in 2021 and 2022 respectively. They are being replaced with alternative sailings beginning September 2020, the cruise line announced.

Rival Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) has suspended cruises till October 2020.

The United States Centers For Disease Control and Prevention extended its ban on cruises carrying at least 250 passengers in the United States through September 30 in July.

Between March 1 and July 10, 2,973 COVID-19 or related illness cases were reported on cruise ships, in addition to 34 deaths, according to CDC.

Price Action: Carnival shares closed 1.55% lower at $15.89 on Tuesday and fell another 1.07% in the after-hours session to $15.72.

Photo courtesy: Roger W on Flickr