Carnival cruise company shares have risen on the decline of concerns about the omicron strain

Shares of cruise operator Carnival Corporation & plc (CCL) rose almost 4% to $21.25. The increase in quotations encouraged research on a new strain of coronavirus – omicron that its impact on the economy will be lower than that of the original pressure of spring 2020.

The World Health Organization has stated that the number of people infected with omicron doubles every 1.5-3 days, and health experts believe that this variant is more contagious than delta. However, CNBC reported: “Studies so far show that the damage caused by omicron is likely to be in the worst-case similar to previous options and possibly milder.” In particular, journalists refer to a study conducted in Hong Kong, which suggests that the infection of the omicron strain affects the lungs less. 

Indicates that it may have less severe consequences for those infected. Another study conducted in South Africa suggests that omicron is much less potent than delta: only 1.7% of cases of omicron infection that doctors observe in this country require hospitalization, compared with 19% in the case of delta infection. Not mean that omicron should lightly. However, its appearance will likely not lead to severe economic restrictions.

Investors considered that the probable lesser danger of omicron is positive news for the Carnival cruise operator.

It should note that the work of Carnival liners in the conditions of a pandemic has become possible because the company has introduced strict sanitary standards for guests and staff, which make the trip safer. The company also has a separate website that publishes information about onboard security measures to reduce the number of subsequent cancellations.

The company has not been working at total capacity for several months, so any positive news hinting at the resumption of tourist activity leads to an increase in quotations.