Seems to be just one of the other international voyage delays carnivalof (New York Stock Exchange: CCL) (New York Stock Exchange: CUK) Brand. Princess Cruises announced on Tuesday that it will suspend voyages from Australia and New Zealand until the end of May.
New Zealand is recognized as one of the best countries to control COVID-19. It has suffered less than 1% of the deaths per capita of the United States. Australia’s performance is not as good as New Zealand, but it is definitely better than most major territories. Since reaching its peak more than two months ago, Australia’s cases have fallen sharply, so why did the two healthiest countries postpone the new cruise to June?
For Carnival investors and those who fix their money on smaller competitors, the reasons for the extended suspension period should be problematic Royal Caribbean (New York Stock Exchange: RCL) with Norwegian Cruise Line (Nasdaq stock code: NCLH). Due to the uncertainty of international travel restrictions, the Carnival’s Princess line has postponed voyages to Australia and New Zealand. If the carnival is less than seven months away, the carnival will think it can safely sail from Australia or even New Zealand, then will we really resume operations closer to home in December? The past seven months and changes have been difficult, and the next few months may not be easy.
After all this is a small world
In the few areas where cruise ships have resumed operations, this is a slow increase. Sailings from countries such as Italy, France, Greece, Taiwan and Germany are restricted to locals. Unfortunately, even if safety and health precautions are taken by these ships, the industry has experienced several outbreaks at sea.
Investors who have been returning to cruise in the United States as early as December may think that Carnival, Royal Caribbean and Norwegian Cruise Line are completely dependent on American passengers, which is a good choice. There are only a few ships in each cruise ship, and even then, capacity may be limited. However, if there are no profitable international tourists, the situation will not be the same.
The suspension of the Australian and New Zealand Princess voyages-good actors in the pandemic-is a worrying indication that the industry is at the mercy of its weakest players. In industries that travel the world, it seems that only one country or region with COVID-19 under control is not enough, nor will it help the prospects of some of the most hit consumer discretionary stocks.
Things don’t have to end badly. We still need a few days to determine whether the current ban on US navigation will be lifted or extended. The princess’s voyage to June in two countries on the other side of the world does not mean what will happen here. However, if we have not sailed in the United States seven months from now, it is hard to imagine that all three players will avoid bankruptcy. If this is a half-time game, not everyone will see this game.