Norwegian Cruise Line Is Sailing Into Calmer Waters

Author:
Publish date:
Video Duration:
2:19

Norwegian Cruise Line (NCLH) - Get Report appears to be proverbially sailing into slightly calmer waters. 

In a filing with the Securities and Exchange Commission, the cruise operator said that on advice from accounting firm PriceWaterhouseCoopers it was amending the phrase “substantial doubt about NCLH’s ability to continue as a going concern” within its financial statements, thanks to “NCLH’s liquidity and management plans.”

The message: That while Norwegian is still experiencing difficult times amid the Covid-19 pandemic and shutdown of the cruise and tourism industries, it also sees calmer seas ahead, with enough cash on hand to keep it afloat through at least next year.

Norwegian previously warned of a possible bankruptcy in May, but has since raised over $2 billion through cost-cutting efforts and other measures, ensuring the company’s survival through the next year even without revenue.

Meantime, Norwegian rival Carnival (CCL) - Get Report said Thursday that its Germany-based cruise line AIDA Cruises will resume operations in August, with three ships set to resume sailing.

Watch More Videos From TheStreet and Jim Cramer: