Norwegian, United Airlines Rise on Positive Vaccine News

Norwegian Cruise Line and United Airlines trade higher following Russia's claims to have a coronavirus vaccine.
Author:
Publish date:

Norwegian Cruise Line Holdings  (NCLH) - Get Report and United Airlines  (UAL) - Get Report were advancing Tuesday on positive signs in the battle against the coronavirus, which has put a ( stranglehold on the travel industry.) - Get Report

Norwegian shares were up 8.5% to $16.95, while United Airlines was climbing 6.3% to $39.91.

Royal Caribbean  (RCL) - Get Report, which reported a second-quarter loss, was climbing 6.5% to $61.25 as the battered cruise line operator beat Wall Street's revenue expectations. 

Russia claimed to have officially registered a coronavirus vaccine.

Russian President Vladimir Putin said Tuesday that Russia's health care regulator approved a Covid-19 vaccine, though the vaccine has yet to complete clinical trials and no information about any late-phase testing has been published.

Speaking at a government meeting Tuesday, Putin said that the vaccine has undergone proper testing and is safe.

Several drug companies, such as Pfizer  (PFE) - Get Report, Moderna  (MRNA) - Get Report and Novavax  (NVAX) - Get Report have been working on an effective vaccine, though none have reached the approval stage. 

The World Health Organization said all vaccine candidates should go through full stages of testing before being rolled out.

The coronavirus outbreak has devastated the travel industry as people attempt to abide by social distancing restrictions. 

Late last month, United Airlines reportedly told its pilots that nearly a third, or 3,900, of them may be furloughed. Norwegian. which extended its global sailing suspensions through Oct. 31, said last week that its targeted monthly cash burn was on average about $160 million per month during the suspension of operations. 

During a conference call with analysts, Norwegian President and CEO Frank Del Rio said would-be passengers continue to book future sailings despite the industry shutdown.

Del Rio also said that its ships wouldn't be back in force until the spring of 2021.