Norwegian Cruise Line Extends Travel Suspension, Rattling Industry

Norwegian Cruise Line Holdings Ltd. extended a suspension of global cruising through the end of September, dashing the stock market’s hopes for a return to service months after the Covid-19 pandemic shuttered the industry.

The company said the few exceptions were Seattle-based Alaska cruises set to sail in September. The company also is canceling some voyages in October, including Canada and New England trips.

Cruise industry stocks fell in after-hours trading Tuesday, with Norwegian plunging as much as 15%. Carnival Corp., the market leader, dropped 11%, and the news also weighed on airline stocks. United Airlines Holdings Inc., Delta Air Lines Inc., Southwest Airlines Co. and American Airlines Group Inc. all fell more than 3%.

Cruise stocks had been staging a remarkable recovery in recent weeks on prospects that the industrywide shutdown could come to an end as soon as August. The capital-intensive companies have raised billions in stock and high-interest-rate debt offerings to weather months without customers.

But a resurgence of Covid-19 cases in places such as South Florida, home of the world’s largest cruise port, could be weighing on prospects for a return.

— With assistance by Jeran Wittenstein

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