On Tuesday, Carnival Crop announced plans for a $1 billion stock offering, while warning investors about a $2.9 billion loss for Q3, typically its busiest quarter. The latest offering adds to the growing mountain of billions in debt and equity that Carnival has raised since the beginning of March, as the embattled cruise-ship operator struggles to 'stay afloat' - no pun intended.
Six months into the pandemic pause, Carnival shares are down 4% in European trading Thursday morning after the international cruiseline operator revealed late Wednesday night that it would extend cancellations through the spring of 2021.
In keeping with the company's "ongoing ship enhancement program", Carnival is delaying the return of four ships until enhancements are complete, leading to cancellations into April 2021.
"As we continue to work through issues related to our eventual return to operations, we are committed to providing our guests and travel agent partners with certainty where we can, although we regret disappointing our guests," said Carnival Cruise Line President Christine Duffy in a release provided by spokesperson Vance Gulliksen.
Here's a rundown of which ships will be impacted (courtesy of USAToday):
- Itineraries from Miami are canceled until March 13.
- Itineraries from Tampa are canceled until March 19.
- Itineraries from New Orleans are canceled until April 29.
- Itineraries from Brisbane are canceled through May 16.
- The first sailing will be the Singapore to Brisbane voyage on June 12.
The premarket move brought shares back to their August lows.
Although the company is couching these cancellations as "routine maintenance", it sounds like something the company probably should have probably disclosed to investors a couple of days ago. Though the company is also in the process of selling 18 of its ships amid its unprecedented financial struggles that have become an industry-wide problem.