Shares of the British-American luxury cruise operator Carnival Corporation plunged by more than 31 percent on Thursday. The drop in its stock prices came right after the company announced that it will be suspending the operations of its Princess Cruise line for two months due to growing concerns over the spread of the novel coronavirus.
The suspension will directly impact the company's fleet of 18 luxury cruise liners, which will all be anchored for two months starting on May 10. Ships that are already at sea with voyages scheduled to end before March 17 will carry on as planned. Ships with voyages extending beyond March 17 will be forced to dock at the "most convenient location for passengers."
The company stated that all affected passengers will be given credit for a free cruise at a later date. They will also be given additional benefits, which they can use during future trips. Those who do not want to receive the free cruise may ask for a full cash refund.
Princess Cruises president, Jan Swartz, mentioned in a statement that the suspension is a "bold action" taken by the company to show its commitment in ensuring the well-being of its customers.
Following the plunge in the company's shares, pre-market trading was immediately halted. Since the start of the year, Carnival Corp's shares have fallen by more than 70.6 percent. The recent drop that happened on Thursday took the stock further down to $14.97 per share.
Carnival Corp's operations have been heavily hit by the continued the spread of the coronavirus, particularly after several countries had issued travel advisories to mitigate the spread of the epidemic. In the United States, the State Department issued its advisory earlier in the week, asking the elderly and those with underlying health conditions to avoid traveling by ship.
The company's shares dropped significantly following the recent quarantine of one of its ships, the Diamond Princess. The cruise ship had one of the largest clusters of confirmed coronavirus cases outside of China. At its peak, more than 700 passengers and crew on board were confirmed to have contracted the viral disease. In early February, the ship and its 3,700 passengers and crew were quarantined just off the coast of Japan.
Last week, another Carnival Corp-owned cruise ship was quarantined after health officials confirmed that 21 passengers and crew members were infected. The ship was immediately moored off the coast of California before it was brought to the Port of Oakland. The infected passengers were immediately sent to federal quarantine facilities after they had disembarked.
