Published on : Monday, March 30, 2020
The coronavirus outbreak has made U.S. cruise lines to experience nearly $750 million loss since January. A State Department travel warning to Americans this past weekend could further rock their boats. The shares of Carnival Cruise, Norwegian Cruise and Royal Caribbean Cruise have dropped 60% to 70% since January as passengers have canceled trips and cruise lines have suspended voyages to Asia. Hundreds of passengers have been stuck on quarantined ships while others have questioned the coronavirus quarantine protocols while onboard.
The U.S. State Department weighed in Sunday with a statement advising Americans to avoid cruise ships because of an increased risk of infection of COVID-19 in a cruise ship environment.
The State Department of United States said that while the U.S. government has evacuated some cruise ship passengers in recent weeks, repatriation flights should not be relied upon as an option for U.S. citizens under the potential risk of quarantine by local authorities.
The cruise industry’s largest trade group avoided addressing the State Department travel advisory, saying in a statement on Monday that they are staying focused on development of an aggressive, responsive plan as agreed to during the meeting [last week] with Vice President Mike Pence.
The industry analysts and executives from the nation’s three biggest cruise lines have said it’s too early to determine how much coronavirus will impact 2020 profits, but total revenue losses so far this year have already reached about $750 million.