Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Plunged Today

What happened

Shares of Royal Caribbean (NYSE:RCL) sank on Tuesday after the cruise ship company said it was seeking to raise another $1 billion to fund its operations during the coronavirus pandemic. Fellow cruise ship operators Carnival (NYSE:CCL) (NYSE:CUK) and Norwegian Cruise Line Holdings (NASDAQ:NCLH) also fell on the news.

As of 10:40 a.m. EDT, Royal Caribbean, Carnival, and Norwegian Cruise Line Holdings were down 10%, 6%, and 6%, respectively.

So what

With most of its fleet unable to leave port due to COVID-related sailing restrictions, Royal Caribbean has suffered heavy losses during the coronavirus crisis. In just the first six months of 2020, it generated a net loss of $3.1 billion. 

Unfortunately, those losses are set to grow even larger in the coming months. Royal Caribbean said that while it hopes to resume voyages by Dec. 1, it could “provide no assurance” that it will be able to restart

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Carnival, Royal Caribbean, and Norwegian Cruise Line Might Not Sail Until 2021

Carnival (NYSE:CCL)(NYSE:CUK) tried to dip its feet into the chilly November waters, but it’s now joining its smaller rivals in hoping for a December relaunch. Things could get worse. If the Centers for Disease Control and Prevention (CDC) reportedly has its way, we may have to wait until at least February to get the out-of-favor cruising industry back in business. 

The moment the CDC extended its No Sail Order until the end of October, we saw Royal Caribbean (NYSE:RCL) and Norwegian Cruise Line Holdings (NASDAQ:NCLH) cancel all U.S.-originating sailings until early December. With the CDC extending the order a few times now — and often near the end of the travel ban — they didn’t want to be caught with displaced passengers scrambling at the port for nixed voyages. Carnival initially decided on a clever gamble. It would move most of its future cruises until at least December, but

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Royal Caribbean, Norwegian, MSC cancel sailings through Nov. 30

CLOSE

Cruise Lines International Association, which represents 95% of the cruise industry, introduced mandatory requirements to be able to set sail again.

USA TODAY

A week after the CDC extended its “no-sail” order, Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd. have canceled sailings through November, a month past the order’s expiration date. 

On Tuesday, Royal Caribbean Group,  the parent company of  flagship Royal Caribbean International, Azamara, Celebrity Cruises and Silversea Cruises,  announced it was extending its own operational suspension through Nov. 30. 

There was one exception to the cancellation: it is going forward with Hong Kong cruises scheduled for November.

However, Celebrity and Azamara have canceled additional sailings. Celebrity Cruises suspended its full 2020/2021 winter program in Australia and Asia and likewise Azamara canceled its 2020/2021 winter sailings in Australia, New Zealand, South Africa and South America, according to a news release on the company’s website.

Norwegian Cruise

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Why Carnival, Norwegian Cruise Line, and Royal Caribbean Stocks All Popped Today

What happened

It was a slow start today, but as the day wore on, shares of cruise ship operators Carnival (NYSE:CCL), Norwegian Cruise Line Holdings (NASDAQ:NCLH), and Royal Caribbean Group (NYSE:RCL) all weighed anchor and set sail in afternoon trading. By close of trading Wednesday, shares of Carnival ended 5.3% higher, Norwegian notched a 4.5% gain, and even Royal Caribbean edged up 2.8%.

Cruise ship next to a sunny beach with palm trees

Image source: Getty Images.

So what

Just before noon, J.P. Morgan gave a lift to the entire industry when it declared itself “incrementally bullish” on cruise operators, and raised its price targets across the board: It hiked Carnival stock to $17 a share, raised Norwegian Cruise to $22, and took Royal Caribbean higher to $79.  

The analysts are currently attending the four-day Seatrade Cruise Virtual industry conference (the source of several bullish comments from cruise company CEOs earlier this week), and their big takeaway from

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Norwegian Cruise Line cancels cruises until December after CDC no-sail order extended

MIAMI — Norwegian Cruise Line Holdings has canceled cruises on its three brands — Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas — until December.



a large ship in a body of water: Images of Norwegian Encore cruise ship during inaugural sailing from PortMiami on Nov. 21-24, 2019.


© Richard Tribou/Orlando Sentinel/TNS
Images of Norwegian Encore cruise ship during inaugural sailing from PortMiami on Nov. 21-24, 2019.

The announcement comes just days after the White House overruled a plan by the U.S. Centers for Disease Control and Prevention to ban U.S. cruises until February 2021. Instead, the agency extended its “no-sail order” through Oct. 31. Cruise operations stopped in the U.S. in mid-March amid COVID-19 outbreaks on several ships.

Carnival Cruise Line canceled all U.S. cruises for November and December except for those that will leave from PortMiami and Port Canaveral, which are on track to restart Nov. 1. Royal Caribbean Group and MSC Cruises continue to sell cruises for November. Disney Cruise Line and Virgin Voyages are still selling cruises for

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Will Royal Caribbean Follow Carnival and Norwegian Cruise Line Into Deeper Waters?

Another week, another round of cruise industry cancellations. Last week it was Carnival (NYSE:CCL) (NYSE:CUK) pushing out most of its sailings into 2021. Only a half-dozen Carnival ships will be cruising on voyages leaving exclusively out of two Florida ports starting early next month.

On Monday it was Norwegian Cruise Line Holdings (NASDAQ:NCLH) suspending all of its November sailings across all three of its brands. The clock is now ticking on Royal Caribbean (NYSE:RCL). Will it follow Norwegian Cruise Line and just call November off? Will it follow Carnival and hold off until next year, keeping a few ships to test the local waters next month? Will it carve its own path?

Santa Claus bearing gifts paddling in the direction of a Royal Caribbean cruise ship.

Image source: Royal Caribbean.

Ports of stall

There was initially a sigh of relief last week when the Centers for Disease Control and Prevention (CDC) extended its No Sail Order only through the end of October. However,

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Why Carnival Corporation, Royal Caribbean, and Norwegian Cruise Line Stocks All Popped This Morning

What happened

On Monday, Norwegian Cruise Line Holdings (NASDAQ:NCLH) followed in the footsteps of rival Carnival Corporation (NYSE:CCL), announcing that despite the U.S. Centers for Disease Control and Prevention (CDC) permitting cruise lines to resume sailing in November, Norwegian will in fact delay any resumption of operations by another month. The company says it won’t set sail from U.S. ports before December.

This news cost Norwegian stock a couple of percentage points yesterday, but today the shares are taking back those losses — and more. In fact, Norwegian isn’t alone in being up today (6.6% as of 10:50 a.m. EDT). Carnival is up nearly as much (6.4%), and Royal Caribbean (NYSE:RCL) is rising even more — up 6.8%.

The question is, why?

Three cruise ships lined up abreast in port

Image source: Getty Images.

So what

There may be any number of answers. Investors could be simply relieved to see President Donald Trump back in the White

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Norwegian Cruise Stock Down on Extended Voyage Suspension

Norwegian Cruise Line Holdings Ltd. NCLH recently announced extension of its pause on global cruise voyages owing to the coronavirus pandemic. Following the news, shares of the company declined 1.6% during trading hours on Oct 5.

The extension applies to all voyages for Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises between Nov 1 and Nov 30. However, for cancelled cruises, guests are likely to be notified through communication through travel advisors.

The cruise industry is witnessing a slump in demand for cruise on account of the coronavirus-induced shutdowns. However, the company stated that cruise bookings for fourth-quarter 2020 and 2021 are strong, while pricing for 2021 remains within historical ranges. The company is also continuing to take bookings for 2020, 2021 and 2022.

In the past six months, shares of the company have gained 54.3% compared with the industry’s 44.8% growth.

Enough Liquidity to Tide Over Pandemic

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Norwegian Cruise Line cancels cruises until December after CDC no-sail order extended | Money

MIAMI — Norwegian Cruise Line Holdings has canceled cruises on its three brands — Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas — until December.

The announcement comes just days after the White House overruled a plan by the U.S. Centers for Disease Control and Prevention to ban U.S. cruises until February 2021. Instead, the agency extended its “no-sail order” through Oct. 31. Cruise operations stopped in the U.S. in mid-March amid COVID-19 outbreaks on several ships.

Carnival Cruise Line canceled all U.S. cruises for November and December except for those that will leave from PortMiami and Port Canaveral, which are on track to restart Nov. 1. Royal Caribbean Group and MSC Cruises continue to sell cruises for November. Disney Cruise Line and Virgin Voyages are still selling cruises for December.

Norwegian Cruise Line Holdings and Royal Caribbean Group teamed up to hire a group of medical experts who

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Norwegian Is Getting Ready to Cruise Higher



a large ship in a body of water


© Source: Alfonso de Tomas / Shutterstock.com


Norwegian Cruise Line (NYSE:NCLH) and its cruise brethren are among the most repudiated names against the novel coronavirus backdrop, but there are signs the stormiest seas could be behind Norwegian Cruise Line stock.



a large ship in a body of water


© Provided by InvestorPlace


An 8% gain for the week ending Sept. 30 is a starting point, but there’s plenty more work to be done. Although NCLH stock more than doubled off its March lows, it needs to more than triple to reclaim its pre-pandemic highs.

In the essence of full disclosure, I’m not the biggest fan of cruises or the related equities, but my bias doesn’t belong here. What’s more important is that Wall Street is warming to this downtrodden industry.

Some analysts use the phrase “inflection point” regarding the cruise industry, implying that while the road ahead won’t be bump-free for Norwegian and friends, operators are

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