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Why Cruise Stocks Are Higher Friday

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Are smoother seas ahead for the major cruise lines?

Despite a recent resurgence of coronavirus cases in the U.S., a series of positive announcements from cruise line companies has sent the sector soaring Friday.

Carnival announced Friday that its 2021 bookings “remain within historical ranges at prices that are down in the low- to mid-single-digits range.”

While Carnival did also announce 13 ships are expected to leave its fleet, marking a 9% reduction in capacity, further optimism was taken from plans to resume operations of its AIDA line from German ports beginning next month.

Positive news also came from Norwegian Cruise Lines. In a filing to the Securities and Exchange Commission, Norwegian said its independent auditor PriceWaterhouseCoopers said it was amending the phrase “substantial doubt” about Norwegian’s ability to continue operation.

“Management and we previously concluded there was substantial doubt about the Company’s ability to continue as a going concern,” PriceWaterhouseCoopers said in the report, adding that “management has subsequently taken certain actions, which management and we have concluded remove that substantial doubt.”

However, markets continue to grapple with the impact and potential impact of a resurgence of coronavirus cases. As of Friday, the U.S. has reported over 3.1 million confirmed virus cases, with California, Florida and Texas reporting a record number of cases Thursday.

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