Norwegian Cruise Line Holdings (NYSE:NCLH), and
Carnival (NYSE:CCL) (NYSE:CUK) were each down about 5% on Monday morning after the cruise industry was the subject of a cautious write-up over the weekend.
So what
Cruise lines were hit hard in 2020 after the pandemic brought their businesses to a halt, but the stocks have been part of the so-called reopening rally this year as investors look forward to a return to normal as the vaccine rollout progresses.
A report over the weekend in
Barron s splashed some cold water on that optimism, warning that the cruise operators have cut into future investor returns due to the $40 billion in debt and equity the industry raised during the downturn. The cash was necessary to ride out the storm, but higher interest expenses and bloated share counts will cost investors down the line.
Send
The state of Florida sued President Joe Biden’s administration in federal court on Thursday seeking to block the Centers for Disease Control and Prevention’s decision to prevent the U.S. cruise industry from immediately resuming operations paused for a year because of the coronavirus pandemic.
The suit, filed by Republican Florida Attorney General Ashley Moody in Tampa, asked the court to issue an injunction barring enforcement of the CDC’s order and to quickly lift a “nationwide lockdown” on the industry in place since March 2020. Early in the pandemic, there were dangerous outbreaks of COVID-19 on numerous cruise ships.
Cruise ship off Carlisle Bay on March 12, 2021. (FILE)
Barbados is sending more than thoughts and prayers to neighbouring St Vincent and the Grenadines as the territory prepares for the impending eruption of La Soufriere volcano.
Related Article
Having spoken to the President and CEO of Celebrity Cruises (Royal Caribbean Cruises) Michael Bayley, Prime Minister Mia Amor Mottley told the nation that help is on the way to St Vincent in the form of empty cruise vessels with just staff onboard to aid in the evacuation efforts. Furthermore, she shared that at the same time Minister of Tourism and International Transport, Senator Lisa Cummins has been working with Carnival Cruises.
Travel industry hopes seacations will make waves news.rthk.hk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from news.rthk.hk Daily Mail and Mail on Sunday newspapers.