Investor Alert

July 20, 2021, 9:01 a.m. EDT

Carnival stock bounces after plans to have nearly 75% of cruise capacity operating by year end

Shares of Carnival Corp. (NYS:CCL) bounced 1.9% in premarket trading Tuesday, after the cruise operator said it expects to operate 65% of its total fleet capacity by the end of 2021. The company also announced plans in which it envisions its Carnival Cruise Line brand's entire fleet could return to service this year, which would increase the total operating capacity to nearly 75% by year end. For its North America brands, Carnival Cruise Line has resumed cruises with three ships sailing out of U.S. ports, and intends to have 15 ships in operation by the end of October and its entire fleet cruising by year end. Princess Cruises will resume operations out of two U.S. ports this weekend, and expects to have six ships operating by the end of the year. Seabourn has resumed cruises with two ships, sailing from Greece and Barbados, and expects to add a third ship sailing to begin the Antarctica season in November. "With strong ongoing demand for cruising, we look forward to serving our guests with additional ships announced across eight of our brands and nearly three-quarters of our fleet capacity returning by the end of this year, marking an important milestone for our company and all those who rely on the strong economic impacts generated by the global cruise industry," said Chief Communications Officer Roger Frizzell. The stock has tumbled 25.2% as it lost ground in 10 of the past 11 sessions to close Monday at a 5 1/2-month low. It has lost 9.0% year to date, while the S&P 500 (S&P:SPX) has gained 13.4%.

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