Norwegian Cruise Line bookings up 40% since start of 2021

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Norwegian Cruise Line Holdings reported bookings have jumped about 40 % in the first two months of the entire year, but a restart for the beleaguered industry remains months away.

More than 80 per cent of the reservations were new, cash bookings, the company said on Thursday. Nevertheless, regulatory clearance for the market to resume procedures, which turn off almost this past year due to Covid-19, even now isn’t in sight, and Norwegian indicated it could like up to 90 days to get ready for cruising again.

Norwegian is the second operator to record signs of pent-up demand for holidays, following very similar comments on February 22 by Royal Caribbean Cruises. All of the cruise companies, incorporating market leader Carnival Company, will be awaiting approval to resume sailing from the US by the Centres for Disease Control and Prevention.

“This remains the largest unknown/overhang,” Steven Wieczynski, an analyst with Stifel Nicolaus & Company said in a note.

Shares of Norwegian fell up to 7.1 per cent to $29.05 in New York on Thursday. Carnival and Royal Caribbean, the second-biggest operator, were as well lower. Norwegian shares had been up 23 % this season at the market's close on Wednesday.

“The business is experiencing robust future demand across all brands with the entire cumulative booked position for the first half of 2022 substantially before 2019’s record levels,” Norwegian said. Excluding future cruise credits, prices had been consistent with historical levels.

The robust comparisons might reflect particularly weak November and December bookings, given the surge in Covid-19 cases in the US during those a few months. The market has been virtually turn off by the global pandemic, with almost all sailings suspended since mid-March 2020.

Norwegian, and others, possess cancelled cruises to the finish of May, and it appears the industry’s suspension may previous even longer. Sailings to Alaska, a major summer industry for the sector, are also suspended.

Speaking on a phone with investors, leader Frank Del Rio stated Norwegian would like about 90 days to get ready to sail again when it gets the green light from the CDC, the gatekeeper to get the industry’s return.

It’s possible the firm may soon have help with the “next stage” of the path to time for the seas, he said, adding he doesn’t believe the CDC is close to giving full approval.
Source: https://www.thenationalnews.com

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