Norwegian Drops After Cruise Halt Extended

Shares of cruise giant Norwegian traded lower after the company extended its halt on cruises through February and, in some cases, March.
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Shares of Norwegian Cruise Line  (NCLH) - Get Report dropped Wednesday after the company extended the suspension of its global operations through February and, in some cases, March.

Shares of Norwegian at last check traded at $22.51, down 1.9%.

The suspension now includes all voyages on Norwegian Cruise Line departing between Jan. 1 and Feb. 28 and some select voyages in March. 

Norwegian's Oceania Cruises and Regent Seven Seas Cruises has suspended all voyages departing between Jan. 1 and March 31, the Miami company said.

The company said it "continues to work through its return-to-service plan to meet the requirements of the Framework for Conditional Sailing Order issued by the Centers for Disease Control and Prevention."

Customers booked on the canceled voyages were asked to contact their travel advisers or the company.

In November, cruise giant Norwegian reported a third-quarter loss of $677.4 million, or $2.50 a share.

The company said bookings for the first half of 2021 are “below historical ranges,” but bookings for the second half are "in line with historical ranges.”

Norwegian last month also launched a secondary offering of 40 million shares at $20.80 each.

Norwegian said it would use the funds for general purposes. Barclays and JPMorgan are underwriting the offering. 

Last month, cruise giant Carnival  (CCL) - Get Report extended its suspension of U.S.-originated cruises through January.

Separately, Carnival's Princess Cruises line also said it would extend the suspension of its global operations through March.

Industry watchers don't see cruise lines returning to full operations until a vaccine is widely available and customers feel confident enough to book travel again.