Carnival Cruise Line It is canceling and delaying more flights to the US at a time when new cases of COVID-19 average about 170,000 per day in the country amid a mixed rollout of vaccines.
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The planned seasonal service for the Carnival outside San Diego has been suspended until further notice, and cruises scheduled through April 2023 have been canceled. The company said some flights from California to Hawaii will continue, but will sail from Long Beach instead.
The carnival began warning travelers about the cancellation on Friday.
The cruise line said cruises planned on three ships – Magic, Paradise and Ballor – have been postponed until November.
“Like a lot about this current global situation, we adapt our plans as conditions evolve, and we are able to confirm alternatives,” said Christine Duffy, Carnival Cruise Line president, in a statement prepared on Monday.
Shares in Miami-based Carnival Corp. fell 5 percent on Monday. Competitor operator Royal Caribbean slumped 5%, while Norwegian Cruise Line slipped 2.5%.
The U.S. Centers for Disease Control raised its order not to set sail for the industry on October 30, but is also warning people to avoid all cruises due to the risk of infection. The CDC allows a phased restart if the industry meets the testing and safety requirements of the crew.
Cruise companies have been waiting anxiously for the CDC’s guidance for the next phase of the reopening plan, which will allow for short test trips with volunteers. The CDC said on Monday that it expects to publish more guidance sometime in the next several weeks.
Patrick Schulz, an analyst at Truist Securities, said future cruise bookings are now exceeding cancellations for the first time since March. But it is still lowering its earnings forecast for cruise lines through 2022, believing further delays are likely.
Travel agencies now expect July to be the best scenario for a gradual return to North American cruises, Schulz said last week, but a return in September or October is most likely.
That could force the cruise company to raise extra money to stay afloat, Scholes wrote.
Carnival Corp lost more than $ 10 billion last year as the pandemic spread globally, but this month it said it would have enough cash to survive until 2021 even without revenue.
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