Norwegian Cruises Stock Falls on Delay in Resuming Cruises

Norwegian Cruises Stock Falls on Delay in Resuming Cruises
Cliff Hawkins/Getty Images Text size Norwegian Cruise Line Holdings said Tuesday night it will suspend the majority of its voyages through at least Sept. 30. Shares of the big three cruise stocks were falling in aftermarket trading. The company said it would suspend all voyages embarking between Aug. 1 and Sept. 30, though that excludes…


Cliff Hawkins/Getty Images

Text size

Norwegian Cruise Line Holdings
said Tuesday night it will suspend the majority of its voyages through at least Sept. 30. Shares of the big three cruise stocks were falling in aftermarket trading.

The company said it would suspend all voyages embarking between Aug. 1 and Sept. 30, though that excludes Seattle-based Alaska voyages in September. Beyond that, Norwegian is cancelling some New England and Canada voyages in October, citing travel and port restrictions.

“The Company will continue to work in tandem with the U.S. Centers for Disease Control and Prevention (CDC), the federal government and global public health authorities to take all necessary precautions to ensure the health, safety and security of guests, crew and the communities visited,” the company said.

Shares of Norwegian (ticker: NCLH) were down 11.7% to $18.50 in after hours trading. Carnival stock (CCL) was down 7.6%, while
Royal Caribbean Cruises
(RCL) stock was down 6.4%.

All three suspended cruises in mid-March, just as the U.S. began adopting physical distancing guidelines and stay-at-home orders. Cruise stocks have struggled, as the companies burned cash amid the travel industry’s halt.

Cruise lines were among the most visible industries outside of China that were upended early on by the novel coronavirus. Even before the World Health Organization called Covid-19 a global pandemic, there were news reports of the virus spreading on board such ships.

The Centers for Disease Control and Prevention’s no-sail order currently runs through July 24. But the CDC noted on Monday it doesn’t have enough information to say when it will be safe to resume sailing with passengers.

Carnival laid out a plan in May to possibly resume North American sailings from Miami, Port Canaveral, Florida, and Galveston, Texas, with eight ships starting Aug. 1. Royal Caribbean CEO Richard Fain said on CNBC in May that his firm hoped to resume sailing Aug. 1, but he noted it won’t do so, “until we’re sure we have done everything we can to work to protect the safety of our guests and crew.”

Write to Connor Smith at connor.smith@barrons.com

Read More

Add comment

Your email address will not be published. Required fields are marked *

Go High Radio USA

Latest videos