- Cruise line stocks close their worst month in history with staggering double-digit declines.
- Carnival Cruises leads the collapse with a 33% decline as its infected ships beg for entry into Florida.
- Florida’s governor DeSantis will only allow Floridians ashore. And the U.S Coast Guard is advising the ships to stay at sea — even as bodies pile up on board.
- The industry may never recover from this PR nightmare. And the Trump administration is unlikely to offer a bailout.
The cruise industry has once again led the market to new lows with Carnival Cruises (NYSE: CCL) declining by an eye watering 33% by the market close on Wednesday. This comes as the company reports up to 6,000 passengers stranded at sea due to the coronavirus pandemic.
Cruise lines have endangered their passengers and crews by refusing to cancel itineraries and refund passengers at the earlier stages of the crisis. Now, they are trapped in a nightmare scenario that has repeated itself too many times.
Thankfully, major cruise companies will pay for their mistakes. These foreign-registered companies are not included in Trump’s $2 trillion stimulus package. And they will have to turn to the governments of Libera, Panama, and the Bahamas (where many ships are registered) to beg for handouts while they inevitably slide towards bankruptcy.
Cruise Ship Stupidity Puts Everyone in Danger
The cruise ship industry is playing a dangerous game with the lives of its passengers by continuing operations at a time like this. The coronavirus pandemic has infected over 900,000 people around the world and is killing thousands a day. But cruise lines continued to cram passengers on tightly packed ships under conditions one Japanese expert has called a “coronavirus mill”.
The high profile disasters on the Grand Princess and the Diamond Princess, which saw 542 of its 3,500 passengers fall ill to coronavirus, were a wakeup call for the industry. But it was too little too late.
While Jan Swartz of Princess…