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Royal Caribbean Rises as Loss Narrows, CDC Dialogue 'Constructive'

Royal Caribbean reported a narrower net loss and said it had "constructive" talks with the CDC about resuming cruises.
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Shares of Royal Caribbean Group  (RCL) - Get Royal Caribbean Group Report were higher after regulators signaled an end to their no-sail order as soon as July and the company narrowed its first-quarter loss. 

The cruise company reported a loss of $4.44 a share as revenue -- hammered by the shutdown of the travel-and-leisure industry during the pandemic -- dropped 98% to $42 million. 

Analysts were expecting a net loss of $4.61 a share on revenue of $43.9 million, according to FactSet. 

"We are looking forward to resuming operations out of various ports around the world in the coming months," Chief Executive Richard D. Fain said in a statement.

"In addition, we have had very constructive dialogues with the Centers for Disease Control and Prevention in recent weeks about resuming cruising in the U.S. in a safe and healthy manner." 

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On Thursday after the Centers for Disease Control said Americans could relax and party on the high seas again as soon as this July -- if they are fully vaccinated.

Cruising from U.S. ports could restart in midsummer in American waters, the CDC said late Wednesday in a letter to the cruise industry obtained by USA Today.

"We acknowledge that cruising will never be a zero-risk activity and that the goal of the (Conditional Sailing Order)’s phased approach is to resume passenger operations in a way that mitigates the risk of COVID-19 transmission onboard cruise ships and across port communities," the CDC said in the letter. 

Since operations were suspended in March 2020, the Miami company has raised about $12.3 billion by issuing bonds, offering common stock and other methods.