Carnival comedownThe U.S. Centers for Disease Control and Prevention (CDC) says the sailing order that limits cruises will stay in place until at least November, and Florida-based cruise giant Carnival sinks 2.8% on the news.
On Wednesday, the Cruise Lines International Association (CLIA), which represents a bunch of companies in the cruise industry including Carnival, released a public plea asking the CDC to let “pleasure cruising” start again in July. The market seemed pretty confident in a positive response, because stocks went flying. However, CDC promptly issued a statement dashing the rally and staying firm on an opening date no earlier than November 1. Investors weren’t thrilled, and prices bottomed out.
The dip came off the back of a 7% loss after Carnival disappointed its European customers, some of whom were planning on shipping out as early as next week, by announcing it would push back its re-opening on that side of the world by another month in the face of rising COVID cases in Europe and harsher restrictions around the region.
Carnival is up almost 30% so far in 2021 as investors have been buying back stock in anticipation of re-starting operations, so it’s been a frustrating week.