(Bloomberg) -- Carnival Corp.’s Princess Cruises division, which suffered the only known outbreaks of coronavirus at sea, is suspending all of its sailings for 60 days as the pandemic’s global effects accelerate.
Carnival shares plunged as much as 21% to $17.16 after the announcement, touching the lowest intraday level in 11 years. The stock has lost 64% in under two months, from its recent high on Jan. 17.
Although the move is the most aggressive so far by a major cruise group, the Princess line’s 18 vessels are just a fraction of the more than 100 operated by Carnival. The company’s other brands, including Holland America Line, Cunard Line and its namesake division, will still operate as normal with tens of thousands of passengers onboard.
The move to suspend Princess sailings until May 10 pales in comparison to measures in other industries, including the moves by the National Basketball Association and National Hockey League to put their whole seasons on hold.
Current voyages scheduled to end in the next five days will continue to their planned destinations, while those set to end after Tuesday will stop instead at the most convenient earlier location, the company said in a statement.
Customers whose cruises are canceled can transfer 100% of the amount they’ve paid to a future cruise of their choice, Princess said. The company will add an additional unspecified credit for future cruises as an incentive to accept the offer.
The industry is struggling to show authorities and the public that it is still safe. Asked by the White House to draw up a plan, the leading cruise-industry group has proposed barring all passengers 70 and older from boarding ships unless they get a note from a doctor, according to a person familiar with the proposal.
Meanwhile, all confirmed cases of the new coronavirus aboard cruise ships have been on Princess vessels, and it’s still not clear whether there’s an explanation.
The Diamond Princess was under a lengthy quarantine in Yokohama, Japan, with more than 700 people aboard testing positive for the virus. The Grand Princess docked Monday in Oakland, California, carrying 21 confirmed cases.
Separately, Viking Cruises, a closely held company that operates six ocean ships and a river-cruise division, said it was suspending operations until April 30.
The industry has been upended by the pandemic. Norwegian Cruise Line Holdings Ltd. is the worst-performing stock on the Standard & Poor’s 500 Index, with a 74% slump through Wednesday’s close.
A Miami New Times report Wednesday cited leaked emails to show how some members of Norwegian’s sales team had been instructed to use false and misleading talking points about the coronavirus to sell cruises. The company didn’t respond to phone calls and emails seeking comment.
Overall, Carnival, Royal Caribbean Cruises Ltd. and Norwegian have lost about $54 billion in market , or 70%, in less than two months.
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