Norwegian Cruise Lines Now Docked Through October

Author:
Publish date:
Video Duration:
2:52

It won't be bon voyage anytime soon for Norwegian Cruise Lines  (NCLH) - Get Report.

The cruise-line operator late Tuesday said it is keeping its cruise ships docked through at least the end of September amid ongoing concerns over the coronavirus and its potential to incubate on cruise ships.

Shares of the Miami-based company were down more than 8% in trading on Wednesday after the company said it is extending its previously announced suspension of global cruise voyages through at least Sept. 30, and in some cases through October.

Cruise lines in particular have been battered by the coronavirus pandemic, which stopped all but essential travel outright for nearly two months and has generated massive headwinds for the travel and tourism industry, particularly cruises.

A saving grace for Norwegian: The voyage cancellations currently don't include September Seattle-based Alaska voyages, the company said, a popular and lucrative route. Other sailings including its Canada and New England offerings will remain off the table due to due to travel and port restrictions. 

Norwegian last month posted a significantly wider-than-expected first-quarter loss, though surprisingly said it continues to see demand for cruise vacations, “particularly beginning in the fourth quarter 2020 accelerating through 2021, with the company’s overall booked position and pricing for 2021 within historical ranges.”

The company had $1.8 billion of advanced ticket sales as of March 31. It also added $2 billion-plus in cash to its coffers from a debt offering last month.

Watch More of the Latest Videos from TheStreet and Jim Cramer

Related Videos