Already taking unprecedented losses due to COVID-19, the world's top three cruise line companies pin their hopes for survival on a massive bailout from the United States despite bipartisan opposition to this unpopular move.
Carnival Corporation (the world's largest and operator of Princess Cruises), Royal Caribbean Cruises Ltd (operator of the world's four largest passenger ships) and Norwegian Cruise Line Holdings (operator of 28 cruise ships) have now all suspended operations due to the mammoth losses inflicted on their operations by the global COVID-19 pandemic.
Shares of all three companies on Wall Street have plummeted over 60% since January 1 but recovered somewhat on Friday in the wake of a broad rally by equities. Shares of Royal and Norwegian were both halted Friday before the announcements of their suspension of operations.
Passengers are fleeing luxury cruise ships en masse, especially with the notorious publicity generated by the Diamond Princess and Grand Princess cruise ships, whose passengers and crews were infected wholesale by the coronavirus.
On Thursday, Carnival's Princess Cruises announced a suspension of its global operations until May 10, a move that plummeted its stock by over 30%. On Friday, Norwegian announced the immediate suspension of global operations until April 11. Its announcement affects the company's entire fleet of 28 ships across its three brands.
Royal Caribbean said it's suspending U.S. cruising for 30 days. The big three were also joined on Friday by Disney Cruise Line, Carnival's Costa Cruises, and Italian cruise company Costa Cruises.
"With the COVID-19 coronavirus impacting communities around the globe, we have enacted a voluntary temporary suspension of cruise voyages across our brands effective immediately," said Frank Del Rio, president and CEO of Norwegian, in a statement.
Royal Caribbean said its announcement impacts "the fleet's U.S. sailings." It said it will contact affected customers and crew to "work through this disruption."
"We understand the gravity of the public health crisis confronting the country," noted Royal in a statement. "And this is our part to play."
The announcement Friday by the United States of a $50 billion aid package for states and towns affected by COVID-19 propelled all three indices to close over 9%. Carnival, Royal Caribbean and Norwegian saw their badly battered stocks soar along with many other publicly listed firms hit hard by the pandemic
Carnival saw its shares skyrocket 17.4%. Norwegian Cruises stock soared by a massive 15% while Royal Caribbean's stock finished Friday up 6.8%.
