Cruise stocks surged on Thursday after Carnival announced it would embark on its first voyage since the COVID-19 pandemic this weekend.- Carnival subsidiary Costa
Cruises , based in Italy, will restart its sailing operations this Sunday. - Carnival expects its German-based subsidiary, AIDA Cruises, to resume selling on November 1.
- The upcoming Cruise launch will be gradual and include increased safety and health protocols to combat COVID-19.
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Cruise stocks bucked the market sell-off that plagued technology stocks on Thursday and moved higher after Carnival announced two of its Europe-based subsidiaries would resume operations as soon as this weekend.
Costa Cruises, an Italy-based subsidiary of Carnival, will embark on its first voyage since the COVID-19 pandemic sidelined operations on Sunday, September 6. The one-week itineraries will include trips to southern Italian ports and be reserved exclusively for Italian guests.
On November 1, AIDA Cruises, a German-based subsidiary of Carnival, will resume sailing operations as well.
Both
Following the disclosure, Carnival surged as much as 12% to $18.74 in Thursday trades. Royal Caribbean and Norwegian Cruise Lines jumped 9% and 13%, respectively.
Cruise line stocks are a central pillar of Fundstrat Global Advisors co-founder Tom Lee's so-called "epicenter" stocks, which he expects to surge higher in anticipation of a successful COVID-19 vaccine being developed. Epicenter stocks are those that were hit hardest amid the rolling economic shutdowns due to the pandemic.