Carnival Corp CCL shares are trading lower by 6.94% to $12.34 Monday morning. Shares of airline and cruise stocks are trading lower amid the Israel-Hamas conflict, which has caused travel uncertainty and lead to U.S. airlines suspending flights to Israel. The Palestinian militant organization Hamas, which controls the Gaza Strip, launched a series of rocket attacks on Israel over the weekend.
These attacks continued into Sunday and resulted in significant casualties, with over 1,100 people reported dead, including 700 Israelis, over 2,000 injured and hundreds of civilians and military personnel held hostage in Gaza.
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When airlines suspend flights to a particular destination due to security concerns, it can disrupt the entire travel ecosystem. Carnival often relies on air travel for passengers to reach cruise departure points, and if airlines suspend flights to Israel or nearby regions, potential cruise passengers may find it more difficult or expensive to reach their departure points. This can result in reduced bookings and lower revenues for Carnival.
The conflict between Israel and Hamas creates an environment of instability in the region, which can deter tourists and travelers from planning trips to the Eastern Mediterranean. Cruise companies like Carnival often operate routes that include stops in this area, and if passengers are concerned about safety, they may cancel or postpone their bookings. Reduced demand for cruises in this region can lead to lower revenues for Carnival.
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According to data from Benzinga Pro, CCL has a 52-week high of $11.44 and a 52-week low of $7.08.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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