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Norwegian Jumps on Proposal to Resume Operations on July 4

Norwegian Cruise Line traded higher Monday after it proposed a plan to resume operations on July 4 by requiring full vaccinations of guests and crew.

Shares of Norwegian Cruise Line Holdings  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report were rising Monday after the cruise giant proposed a plan to resume operations on July 4 with mandatory vaccination requirements for both crew and passengers.

Shares of the Miami-based company rose 7.78% to $29.88 at last check.

In a letter to the U.S. Centers for Disease Control and Prevention, Norwegian wrote that it "trusts and is optimistic the CDC will agree that mandatory vaccination requirements eliminate the need for the Conditional Sailing Order" and requested them to lift the order for Norwegian’s vessels.

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The CSO requires cruise lines to establish agreements at ports where they intend to operate, implement routine testing of the crew and develop vaccination strategies.

“We congratulate the CDC on the steps it has taken to further open travel for vaccinated Americans. Norwegian Cruise Line Holdings shares the CDC’s view that vaccinations are the primary vehicle for Americans to get back to their everyday lives,” said Frank Del Rio, president and chief executive officer at Norwegian Cruise Line in a statement.

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Norwegian said guests will need to show proof of vaccination no less than two weeks prior to their departure date.

"We believe that through a combination of 100% mandatory vaccinations for guests and crew and science-backed public health measures... we can create a safe, ‘bubble-like' environment for guests and crew," Del Rio added.

The Centers for Disease Control issued new guidelines late last week that said fully vaccinated Americans can travel to and from domestic destinations without quarantine, and do not need a COVID-19 test, provided they wear a mask and maintain social distancing.

If granted permission to sail by the CDC, Norwegian said it will begin cruise operations at an initial reduced capacity of 60%, and gradually ramp that up by 20% every 30 days.

Late last month, cruise stocks fell after the CDC said that the ban on U.S. cruises until Nov. 1 remained in place.

Earlier in March, major cruise line stocks such as Carnival  (CCL) - Get Carnival Corporation Report and Norwegian received price-target increases from J.P. Morgan based on the prospect of economic recovery from the coronavirus pandemic.