Carnival Cancels Some Cruises Through June, Others Temporarily Suspended

Carnival Corp (NYSE: CCL) has announced the temporary cancelation of cruise operations.

What Happened

Carnival announced Monday it was canceling all cruises through June 26, 2020. Ships leaving San Francisco are canceled through 2020. Carnival Sunrise, Legend, and Radiance ships are canceled through Oct. 19, Oct. 30 and Nov. 1, respectively.

The company thanked customers for their “patience and understanding.” For customers who have booked cruises of more than six days in length, Carnival is offering a 100% future cruise credit, as well as $600 onboard credit per stateroom, if the tickets are booked by Dec. 31, 2020, for a sail departing by Dec. 31, 2022.

Alternatively, all customers are eligible for a 100% refund of what they paid. For those who have booked a cruise of less than five days, similar terms apply, except they will only receive $300 in onboard credit per stateroom.

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Why It Matters

In March, Carnival suspended its Princess Cruises for two months due to the coronavirus outbreak.

Carnival’s Diamond Princess became the center of attention as hundreds of passengers became infected with COVID-19 while docked in Yokohama, Japan. A second ship, the Grand Princess, was also linked to the disease.

Carnival had reported a first-quarter (ended Feb. 29) net loss of $781 million or $1.14 per share.

Rival cruise operator Viking has suspended all cruises till May 1, 2020.

Price Action

Carnival shares traded 1.04% higher at $12.64 in the after-hours session on Tuesday. The shares had closed the regular session 8.97% higher at $12.51.