Carnival stock ticks higher after confirming resumption of cruises

In a press release on Thursday, the world’s largest cruise company, Carnival Corporation (NYSE: CCL), said three of its cruise line brands will resume U.S. operations in July.

Carnival Corp opened more than 1% up in the stock market on Friday but lost the entire intraday gain in the next hour. Including the price action, it is now exchanging hands at $27.52 per share (£19.42 per share) versus $20.38 per share at the start of the year.

Guests will be required to show proof of vaccination

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The announcement comes shortly after the U.S. Congress eased the restrictions on cruising in Alaska. According to Carnival Corp, its Holland America Line, Princess Cruises, and Carnival Cruise Line is now scheduled to sail from Seattle to Alaska later this year.

The cruises will only welcome guests that are fully vaccinated. In line with the CDC’s guidelines, proof that the final dose was received at least two weeks before onboarding will be required. The news only days after Carnival expressed confidence that 20% of its cruise capacity will sail this summer.

Princess Cruises will partially operate Alaska season from 25^th July through 26^th September, Holland American Line from 24^th July through 2^nd October, and Carnival Cruise Line from 27^th July through 14^th September.

Carnival also highlighted in the press release on Thursday that the respective brands will announce further details on sailings to Alaska in the coming weeks. These updates will be published on the brands’ websites.

Chief Executive Arnold Donald’s remarks

Commenting on the news, CEO Arnold Donald of Carnival Corporation said:

“It’s great news for cruising, for travellers ready to again explore the world and for all the communities in Alaska that depend on cruising and have suffered great hardships over the past year. Our highest responsibility and top priority are always compliance, environmental protection, and the health, safety and well-being of our guests, the people in the communities we touch and serve, and our shipboard and shoreside personnel. We remain committed to returning to service in a way that serves the best interest of public health and provides our guests with a great cruise vacation at an exceptional value.”

Carnival Corp performed largely downbeat in the stock market last year with an annual decline of more than 50% due to Coronavirus-related restrictions. At the time of writing, the Miami-headquartered company has a market capitalisation of $30.53 billion.