Carnival Announces Pause Extension, Intent to Resume Operations in August

Carnival Cruise Lines (NYSE: CCL) announced that it would be extending cancellations of all cruises through July. The company stated that it intends to begin resuming cruise operations in August, starting with a limited number of ships.

The extension of Carnival's cancellations extends to all North American cruises, with cruises scheduled between June 27 and July 31 being canceled. Most cruises have been canceled through the latter half of 2020. The company has also taken more drastic steps with specific destinations. The Carnival Spirit, which takes passengers far north to Alaska, has had its 2020 sailings canceled entirely. The company also outright canceled trips for its Vancouver-Honolulu line and cruises from Hawaii to Australia.

Cancellations extend to the Carnival Corporation's other cruise lines as well, with the company extending cancellations internationally. Costa Cruises and P&O Cruises, subsidiaries of the Carnival Corporation in Europe, have both canceled additional cruises. Costa announced the suspension of all cruises through June 30. P&O has extended its suspension to August 31.

Carnival plans, however, to begin resuming operations in North America starting in August. The cruise operator is planning to continue operations in a limited fashion in Port Canaveral, Galveston, and Miami. Aside from those ships that have had their sailings completely canceled, the company decided to cancel all other cruises through August 31.

Carnival and its subsidiaries have notified customers by email. For cruises made under the Carnival brand, the company is offering customers a range of options. Customers may choose either credit towards future cruises, onboard credit, or a full refund. P&O and Costa have begun contacting customers directly to apologize for the delays. Costa is offering refunds, as well as the option to retain purchases as credit towards future cruises with a bonus credit worth 50% of the original cost.