The Celebrity Edge cruise ship, the first high-volume cruise to depart from the United States after a pandemic-induced break, docked on Tuesday, June 29, 2021 during a layover in Costa Maya, Mexico.
Eva Marie Uzcategui | Bloomberg | Getty Images
Cruise Stocks stumbled on Monday amid a wider market exodus after an appeals court issued a ruling temporarily upholding pandemic restrictions on the industry.
The U.S. District Court of Appeals for the 11th District on Saturday overturned a ruling accompanying a lawsuit in Florida that challenged the Centers for Disease Control and Prevention’s ability to impose restrictions on the industry.
The 2: 1 decision was made hours before the judgment of the lower court came into force and in the midst of the spread of the Covid Delta variant. The number of new cases in the US is increasing, especially in states with low vaccination rates.
Airline and hotel stocks also fell despite the recent surge in travel demand as the market reacted to the spread of the Covid Delta variety, which is now the dominant variety in the US.
Last month, a federal judge on the Florida sidethat the CDC had no authority to prevent cruises from resuming or regulating cruises in, outside, or within the state. Florida Attorney General Ashley Moody, a Republican, filed the lawsuit in April to lift restrictions on the cruise industry since March 2020.
The shares of the three cruise lines have been down in recent weeks, though they posted gains earlier this year when the cruises resumed operations.
Carnival Cruises stocks are down more than 37% from the 52-week high of $ 31.52 hit on June 8th.
Royal Caribbean stock is down nearly 30% from its 52-week high of $ 99.24, which it hit on February 25. The stock is down nearly 8% this year, bringing the cruise company’s market cap to nearly $ 18 billion
Norwegian Cruise Line’s stock is down nearly 37% from its 52-week high of $ 34.48, which it hit on March 4. The stock fell more than 14% that year, reaching a market cap of more than $ 8 billion.
There were several high profile ones at the height of the pandemic outbreaks aboard cruise lines, which led the CDC to impose strict guidelines on the industry. The cruise industry was among the last sectors to return to pre-pandemic operations as the CDC recently allowed cruises to resume sailing under strict health protocols.
On Friday, Canada announced It will allow cruises to resume in early November and move the original date to February 2022.
Last week, Norwegian Cruise Line sued Florida surgeons general to end the state’s vaccination passport ban, which prevents companies from requesting proof of vaccination from their customers. In its complaint, the cruise operator alleged the ban violated its ability to enforce CDC guidelines and prevent the virus from spreading on board its ship and could force it to cancel upcoming cruises.
The first Norwegian departure from the US is scheduled for August 7th and the first departure from Florida is scheduled for August 15th.
Royal Caribbean and Carnival Cruises have sailing again from US ports, even allow unvaccinated passengers on Florida ships, but unvaccinated passengers must buy Travel insurance to cover Covid-related costs.