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Carnival's Costa Crociere Reschedules South America Sailings

Zacks Equity Research
·3 mins read

Carnival Corporation & Plc’s CCL Italy-based Costa Crociere recently announced the cancellation of voyages for the 2020-21 season in South America. Notably, operations for Costa Fascinosa, Costa Luminosa and Costa Pacifica cruises with scheduled departures between November 2020 and April 2021 have been effectively cancelled.

However, the company announced plans to resume operations for the December 2021-April 2022 period, with two cruises – Costa Favolosa and Costa Pacifica. Bookings for the same are to begin starting Sep 8, 2020.

Dedicated to the northeast region of South America, Costa Favolosa will be offering 17 itineraries, ranging from six to seven nights. It will also be offering three mini-cruises, ranging from three to four nights, with Christmas and New Year's Eve cruises. With boardings in Santos and Salvador, the cruise is scheduled for departure on Dec 5, 2021. Meanwhile Costa Pacifica will have cruises of seven and eight nights through the Prata region, with boardings from Rio de Janeiro, Buenos Aires and Montevideo.

In this regard, executive president of Costa Cruises for Central and South America, Dario Rustico stated, "We look forward to resuming operations in the region in the 2021-2022 season with two ships, continuing to offer the best of Italy on board our ships and a unique and yet exclusive experience for our South American guests."

Compensation Updates

Costa is offering future cruise credits for its cancelled voyages. Notably, guests are entitled for the conversion of the cruise amount paid (minus the travel agent commission) for sailings between Dec 31, 2021 and Jun 30, 2022.

Moreover, for bookings by Mar 31, 2021, guests will receive a bonus in the form of credit, to cover their onboard expenses. The shipboard credit ranges from $400 per cabin to $1200 per cabin, depending upon the voyage length.

Nevertheless, guests can also avail a refund, upon request. However, the amount to be refunded will be subject to terms and conditions.

So far this year, shares of the company have plummeted 63.5% compared with the industry’s fall of 39.1%.

Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL in the Zacks Leisure and Recreation Services industry — has a Zacks Rank #4 (Sell) at present.

Key Pick

A better-ranked stock in the leisure space is Twin River Worldwide Holdings, Inc. TRWH, which carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Twin River 2021 earnings are expected to surge 273.5%.

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Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
Twin River Worldwide Holdings, Inc. (TRWH) : Free Stock Analysis Report
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