Casinos & Hotels

Carnival Doubles Down on Cancellations

Carnival Corp. (NYSE: CCL), along with the rest of the cruise industry, has been one of the biggest losers from the coronavirus. While this cruise line operator recently announced some cancellations, it is doubling down.

The firm announced that it has canceled select itineraries for specific operations in 2021, as it implements its plans for the resumption of cruising in 2021. These included cruise operations in February from Miami, Port Canaveral and Galveston and moving the inaugural sailing of Mardi Gras until April 24, 2021.

The big selling point on the Mardi Gras was that it would be the first liquefied natural gas (LNG) powered ship in the Americas and would feature the first roller-coaster at sea.

Carnival is canceling the remaining itineraries scheduled to operate from Miami, Port Canaveral and Galveston through February 28.

Note out that Carnival recently conducted some financial wizardry and took on convertible debt in order to stay afloat.

The company announced last month that it would be canceling cruises for the first part of 2021. The firm is canceling all embarkations from U.S. homeports for the month of January. Additionally, embarkations from Baltimore, Charleston, Jacksonville, Long Beach, Mobile, New Orleans and San Diego will be canceled through the end of February. Also, embarkations on Carnival Legend out of Tampa will be canceled through March 26.

Carnival stock traded up 5% to $22.22 on Thursday, in a 52-week range of $7.80 to $51.94. The consensus price target is $16.54.