The economic storms churned up by the COVID-19 pandemic don't seem to be over quite yet for cruise lines Carnival (NYSE:CCL) and Royal Caribbean (NYSE:RCL) as Canada extends its ban on passenger vessels sailing its territorial waters. The move, intended to help fight the coronavirus, has prompted both Royal Caribbean and Carnival to cancel some of their cruises, including some offered in the New England and Alaska areas.
The CDC's no-sail order is still set to expire on July 24, but Canada's transport ministry lengthened its own ban considerably a few days ago. Originally slated to end July 1, the ban on cruise ships and ferries carrying 100 individuals or more in Canadian waters will now last through Oct. 31, with a presumed Nov. 1 ending date.
Canadian Minister of Transport Marc Garneau said, "I am announcing updated measures for cruise ships and other passenger vessels in Canada, which includes prohibiting larger cruise ships from operating in Canadian waters" because the government "is committed to protecting Canadians." Garneau added the government will attempt to create programs to aid the Canadian tourist industry, which is likely to sustain a heavy economic loss from the measure.
Such relief does not improve the situation for major cruise lines, however. Royal Caribbean says it is canceling all of its cruises with destinations in Alaska, Canada, or New England as a result of the ban. The November sailing date effectively postpones sailings in the region until 2021. The company's spokesperson, Jonathon Fishman, says Royal Caribbean looks "forward to setting sail from and to these destinations next year."
Carnival announced its British subsidiary, P&O Cruises, will halt all cruises until Oct. 15.