The Canadian Cruise Lines stock jumped nearly 20 per cent on Monday, the highest level since December 2014.
Carnival Canada Inc. shares closed up 1.5 per cent at C$16.97.
The company said it has recorded more than 1,600 million dollars in sales this year.
The Quebec government said on Monday it would pay $1.8 million to the owners of a cruise ship that capsized in July while on a trip to the Caribbean.
Carnival says the ship capsized because of a faulty air compressor and that the company will reimburse all passengers who had to leave the vessel before the ship arrived at its port of Montreal.
Carnival’s cruise ships are often used to transport tourists and expats.
On Monday, officials announced they would pay for the damages.
It is unclear whether the payment would be made immediately, or whether it would be deferred for at least a year.
It will be the second time the government has made an emergency payment in this manner.
On March 3, it also paid for damages to the ship’s hull, as well as the damage to the port’s electrical system.
The French-Canadian company is owned by billionaire Pierre Omidyar, the founder of eBay Inc. The Canadian company was also fined by the Canadian government for violating the nation’s marine-conservation laws by operating an unlicensed vessel, the government said in a statement.
The ship, called the Carnival Princess, was carrying 4,000 passengers and was heading to the Bahamas for a Caribbean cruise.
The incident sparked an outcry from some Canadians, who say the cruise ships can be dangerous.
They say the Carnival ship should have been licensed and inspected for safety.
Last year, Omidys company agreed to pay $3.8-million in fines to the federal and provincial governments for operating illegal vessels.
Carnival has not said whether it will pay for those damages, or any of the more than $8.6-million the federal government is offering for the ships to be repaired.
In addition, the cruise ship’s owners have been offering a $1,000 reward to anyone with information that leads to the arrest of the owners.