Cruise stocks are down on Friday and it looks like fears of extensions to cruises due to the novel coronavirus are behind the drop.
The news came from Princess Cruises, a cruise line under Carnival (NYSE:CCL), earlier this week. According to it, cruises for its UK-based trips from Southampton have been delayed until Sept. 25. That includes its Sky Princess, Regal Princess, and Island Princess ships.
So what exactly is behind this delay pushing cruise stocks down today? It all comes down to the U.K. Government announcing a new roadmap for reopening travel. That includes continued restrictions on international travel. That covers the Princess Cruises mentioned above.
With the U.K. still not planning to allow international cruises, that could be a bad sign for companies in the U.S. as well. Any delay over there could affect cruise times in the U.S. and that’s not something investors in cruise stocks want to hear.
The negative cruise stocks news today has more than just Carnival down. Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH) are also falling today. NCLH stock is being hit the hardest and there’s another reason for that.
Norwegian Cruise Line also announced an underwritten public offering of 47,577,947 shares of NCLH stock. The offering is priced at $30 per share, which is below yesterday’s close of $32.90 per share. That doesn’t seem to be sitting well with investors as shares of NCLH stock are taking quite the beating today.
CCL stock was down 6.6%, RCL stock was down 6.6% and NCLH stock was down 12.6% as of Friday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.