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Why Carnival Corporation Stock Dropped Monday

By Howard Smith - Mar 22, 2021 at 11:29AM

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Another restart delay has investors frustrated.

What happened

Cruise operators have been struggling to make it to the point where operations can restart. Investors, though, have been anticipating that the vaccine rollout has that time coming soon, and have bid up shares recently. But another delay from a Carnival (CCL 8.46%) (CUK 8.00%) cruise line brand has frustrated investors selling Monday. As of 11 a.m. EDT, shares in Carnival were down about 4%. 

So what

The company's Italian Costa Cruise has pushed back its plans for restarting operations by another month. Costa had planned to resume service beginning March 27, but that has now been pushed back to May 1. 

view of Costa Fortuna ship at Nagasaki port

Costa Fortuna. Image source: Carnival.

Now what

Carnival said in a statement, "The decision has been taken in consideration of the restrictions still in place in Italy and other European countries." It added that it wouldn't be able to provide travelers its best cruise vacations, "especially for what concerns the experience ashore." 

Investors have been back buying shares in Carnival anticipating the company restarting operations. Shares are up almost 30% thus far in 2021. Once cruises do resume, precautions will be in place to protect travelers. Costa has plans in place for limited capacity, testing for guests and crew, and temperature checks when disembarking and reembarking, among other protocols. 

In the U.S., cruise operators continue to wait for the CDC's conditional sail order to be updated to possibly allow restarts prior to the current Nov. 1 date.

  

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Stocks Mentioned

Carnival Corporation Stock Quote
Carnival Corporation
CCL
$13.21 (8.46%) $1.03
Carnival Corporation Stock Quote
Carnival Corporation
CUK
$12.28 (8.00%) $0.91

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