The cruise industry has been brought to a standstill by the coronavirus pandemic. Following inhibitions to resume sailing from November 2020, Carnival Corporation & Plc (CCL - Free Report) recently announced the cancellation of operations from two of its Florida ports. Australia operations have also been canceled.
Earlier, the U.S. Centers for Disease Control had issued a no-sail order for cruise operations until Oct 31, 2020. However, owing to the uncertainty revolving around the pandemic, feasibility of future sailings could not be established.
Owing to this, the company cancelled six cruises operating from Port Miami and Port Canaveral which were originally scheduled for November 2020 voyages. Moreover, it cancelled five cruises from Sydney, scheduled between Jan 16 to Feb 8, 2021.
However, with safety protocols in place, the company remains optimistic about resuming operations through a gradual, phased-in approach from Miami and Port Canaveral, thereby confirming December voyages for the time being. Additionally, it is offering flexibility in terms of bookings that includes voluntary cancellations as well as combining of future cruise credit and onboard credit or a full refund. It is applicable for Australia voyages as well.
Carnival has also announced the addition of its new ship Iona to its global fleet of P&O Cruises. Notably, the 185,000-ton unit marks the first British cruise ship to be powered by liquefied natural gas.
With 345 meters in length and 17 decks, the ship comprises eight restaurants, 13 entertainment venues, four swimming pools and 16 whirlpools. It also comes with a unique two-deck SkyDome, specially commissioned for aerial entertainment shows.
With regard to its operations, P&O Cruises president, Paul Ludlow, stated, “Whilst our operations are currently paused until early 2021 Iona will not be sailing for the moment but we look forward to our guests experiencing this game-changing ship as we will continue to offer unparalleled holidays at sea whilst also upholding the latest approved travel protocols."
So far this year, shares of Carnival have plummeted 70.1% compared with the industry’s fall of 40.5%.
Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) in the Zacks Leisure and Recreation Services industry — has a Zacks Rank #4 (Sell) at present.
A Key Pick
A better-ranked stock in the leisure space is Camping World Holdings, Inc. (CWH - Free Report) , which carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Camping World’s 2021 earnings are expected to rise 7.8%.
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