Norwegian Cruise Line Will Launch Its Full Fleet by April. Cruise Stocks Are Still Falling.
Norwegian Cruise Line currently has eight ships on the water, with more expected this year.
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All 28 ships in Norwegian Cruise Line Holdings’ fleet should be in service by April 1 next year, the company’s CEO said—setting a date for a return to normalcy in a sector of the travel industry hit particularly hard by the Covid-19 pandemic.
CEO Frank Del Rio said in an interview with CNBC on Tuesday that 75% of Norwegian’s vessels would return to normal operations this year, up from the eight currently on the water.
The remainder will be in service by the end of the first quarter of 2022, he said—more than two years after the pandemic anchored cruise ships around the world. The Centers for Disease Control and Prevention first issued a no-sail order in mid-March 2020 in line with other global health authorities.
“The world is opening up—more people are getting vaccinated, pent-up demand continues to be very, very strong for the sailings we’ve operated thus far,” Del Rio said. “I think, sequentially, through the end of 2022 and even into the first half of 2023, every quarter gets better.”
“On-board spending is at an all-time high,” he added.
Norwegian, like rivals Carnival and Royal Caribbean Cruises
—the three lines are the largest cruise companies in the world—requires passengers and crew to be vaccinated, with some select exemptions based on medical grounds.
But cruise stocks were still under pressure on Wednesday, in line with the broader market, as concerns about rising inflation gripped investors.
Norwegian (NCLH) stock fell 1.7% in recent trading Wednesday, along with shares in its major competitors. Carnival (CCL) fell 3.2% and Royal Caribbean (RCL) declined 1.9%.
The S&P 500 was down 0.5%, while the Dow Jones Industrial Average fell 0.7%.
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