The CDC released a ‘Framework for Conditional Sailing Order’ on Friday, which spells good news for the cruise industry. Certainly, the stock prices of the cruise lines had positive results at the end of trading.
The entire industry had eagerly anticipated the lifting of the No-Sail-Order. Although the CDC has provided restrictions and additional measures to implement, it is certainly no reason to be negative.
Stocks Start Their Way Up
Carnival Cruise Line, which up to Friday had lost $39.52 of its stock price since the pandemic’s start, gained $1.60. Royal Caribbean had lost $75.78 of its value up to Friday morning and gained $3.62 by the end of trading.
Norwegian Cruise Line Holdings, which had lost $44.16 of its stock value this year, ended the day at $17.07. This means a reasonable $1.58 gained for the day, although the line does show the least gain from the major three.
With the positive news that has come now, some restrictions will prevent the cruise lines’ stock prices from growing too fast. Carnival Corporation already responded to the order and stated guests and partners would need to be patient as the company reviews the conditions:
“Carnival Cruise Line will continue to work with the CDC on an eventual return to guest cruise operations. We are evaluating the CDC’s new order that sets out the conditions under which cruising can resume. Still, there are a significant number of requirements that must be evaluated in the context of our plans to resume operations. We ask our guests, travel advisors, and community and destination partners for their patience as we complete our review. We are committed to communicating more details as soon as possible.”
Until the cruise lines have thoroughly reviewed the new order and implemented the required protocols and regulations, there will not be a good understanding of how the cruise lines will be affected financially.
Cruise Lines Will Have Their Work Cut Out For Them
The CDC will be closely looking at every step the cruise lines take, and guests will want cruising to be back to normal as soon as possible. This means a difficult situation for the cruise lines.
Also Read: The Next Steps Cruise Lines Need to Take on Resuming Cruises
The lines will want to ensure that there will not be any reason for the CDC to intervene in their operations. The crew and officers on-board will have to comply with various recommendations from the various health experts hired by the cruise lines.
And make sure these are implemented as intended, as the CDC has made clear that even one single infection on-board will mean an immediate end of the voyage. CLIA (Cruise Lines International Association) had this to say on the matter:
“While we look forward to reviewing the new Order in detail, we expect much of the Healthy Sail Panel’s recommendations, which were adopted by CLIA’s Global of Directors earlier this month, have been considered and will serve as an important foundation.”
“The cruise industry and the CDC have a long track record of working together in the interest of public health, and we look forward to continuing to build upon this legacy to support the resumption of cruising from U.S. ports. With enhanced measures in place, and with the continued guidance of leading experts in health and science, as well as the CDC, we are confident that a resumption of cruising in the U.S. is possible to support the economic recovery while maintaining a focus on effective and science-based measures to protect public health.”
Will The Stock Prices Rebound Now?
Only with effective systems on-board and both guest and crew 100% committed to complying with the rules will the CDC let the cruise lines operate. Any issues could lead to sanctions from the CDC, making today’s gain in stock prices disappear rapidly.
If all goes well for the coming months, the CDC approves the use of rapid tests, and we possibly see a vaccine, we could very well be looking at a complete rebound of the industry sooner than many expected. The major cruise line stocks are starting to look like a good option after all.
