See the source image

Two of the world’s biggest cruise ship  companies have seen their share prices rocket  in recent days as investors speculating on  which operators will survive the downturn  threw rescue lines to both.

On Friday (20 March) shares in Carnival, the  biggest US cruise operator, jumped 20%,  despite a declining market, when it announced  plans to borrow some $3bn for six months. It  was similarly caught up in Tuesday’s market  surge gaining almost 6% by the end of trading.

The Carnival-owned Diamond Princess and  Grand Princess accounted for more than 800  covid-19 cases, including 10 deaths. This was  one reason why Carnival’s shares started this  week some 75% lower for the year against  S&P 500 losses of around 30%.

It was a similar story on Monday (23 March)  for shares in Royal Caribbean Cruises; they  jumped more than 18.5% on the news that  a new $2.2bn debt facility could stave off the  worst of the downturn for the company.