This is a big week for the cruise industry. The ban on the US Centers for Disease Control and Prevention (CDC) – the infamous “No Sail Order” – expires on Saturday night. Will Carnival (NYSE: CCL)(NYSE: CUK),, Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NASDAQ: NCLH) to finally get a regulatory permit to return to the cruise business?
Currently, cruise lines have no voyages in the states planned until early December, giving them the entire November as a buffer of the order if it actually expires. With higher cases of COVID-1
Bobby for departure dates
Cruise lines would not like anything better than starting sailing again, especially in time for the seasonal jump in holiday cruises near the end of the year. Carnival, Royal Caribbean and Norwegian Cruise Line have reduced the number of cruises currently required to restart in December, just as well. Consumer confidence will take time to win again.
Royal Caribbean and the Norwegian Cruise Line recently topped a panel offering recommendations for the safe resumption of cruise operations. The strict guidelines of the Healthy Sail Panel set out last month were not enough to prevent the CDC from expanding its No Sail order for the last time. The CDC may also ask to extend the ban after October to see how the November 3 presidential election will take place. Earlier it was reported that the CDC wants to push the ban only early next year, but only extended No Sail Order until the end of October under pressure from the current administration.
Chances are not in favor of the industry to start sailing soon right now, but the extension of the sailing ban is not a sinking. The tourism industry continues to return to normal operations, despite the global development of COVID-19 cases. Airlines – where passengers spend much more time sitting a meter and a half away from strangers than a typical cruise ship meal or leisure activity – have resumed selling medium-sized seats. Some regions are beginning to ease their travel restrictions. Resort hotels are putting their destinations on the market again.
It is only a matter of time before regulators allow cruise lines to stay afloat, at least long enough to see if the new health and safety measures matter. Shareholders have suffered brutal losses so far in the three shares, but this is clearly not the driving force in the CDC. It wants to keep people safe, and if it does take risks, it is now more likely to restore jobs that have been displaced, a situation that is exacerbated by the global recession. If the CDC finally gives cruising a chance to prove that this can be done safely in the new norm, it will be more about adhering to the careless pursuits of passengers that have been interrupted for seven months than about profits. and the losses of its shareholders. No matter where you stand on the issue, Halloween is coming. It’s time for a trick or treat for Carnival, the Royal Caribbean and the Norwegian Cruise Line.