Cruise stocks regain market share on wild day. They’re still down big this year.
Cruise stocks closed higher Tuesday after the White House signaled it was ready to provide federal assistance to cruise companies in the wake of the novel coronavirus crisis.
Carnival Corp., the world’s largest cruise line, closed up nearly 11% to $24.02. Royal Caribbean Cruises Ltd. closed up 7% to $51.67. Norwegian Cruise Line Holdings closed up 3.5% to $20.50.
All three companies are based in Miami. Together, they own the vast majority of the world’s oceangoing cruise brands.
“We’re going to be helping that industry,” President Donald Trump said of cruising Tuesday, according to media reports. He added that similar support would also be in order for airlines.
Trading in all three cruise companies was briefly halted Tuesday on volatility concerns. According to Bloomberg, ratings firm Standard and Poor’s also issued a warning Tuesday that it was ready to cut its outlook for both Carnival and Royal Caribbean. Royal Caribbean announced Tuesday it had secured loans totaling $550 million, and would be withdrawing its full-year guidance. On Monday, Norwegian announced it had secured loans totaling $675 million.
Cruise companies have been particularly hard hit in recent weeks after multiple ships were quarantined. Images of sequestered passengers have flashed worldwide, resulting in a sell-off. A total of nine former passengers have died from COVID-19, according to the New York Times.
The companies had started the day off trading lower after falling more than 20% Monday. They remain down about 50% on the year.
This story was originally published March 10, 2020 at 12:14 PM.
