Norwegian extends suspension of most cruises until March

Norwegian Cruise Line Holdings said on Wednesday that it was once again extending its sailing suspension, this time until March, for most of its scheduled trips.

The company, which had previously suspended its cruise until December 31, said all its cruises will be suspended until February 28, with most travel suspended until March 31.

This is one of the longest cruise suspensions announced to date by one of the major listed cruise operators. Rival Carnival, the world’s largest cruise line, has suspended operations until January, with some of its brands extending the suspension until 2021. Royal Caribbean announced last month that its cruise was suspended until January.

Norwegian stock fell around 2% on Wednesday. The company’s shares have risen more than 200% from their low of $ 7.03 a share on March 18, after the company announced its initial travel suspension. The company’s shares, however, are still down more than 60% since Jan.1.

But with positive news on vaccines that could reduce the severity of the pandemic next year, at least in key markets in the global travel industry, Norwegian shares rebounded in November, along with others in industry. In November, the Norwegian stock jumped 42%.

The company said it extended its suspension as it “continued to work through its return to service plan to meet the framework requirements for the conditional navigation order issued by the Centers for Disease Control and Prevention of United States.”

On October 30, the CDC withdrew its nearly eight-month sailing ban order and replaced it with a “conditional sailing order”. This new order provided a framework for the industry to start thinking about how to resume safe navigation. Among other requirements, it includes test cruises that will be monitored by CDC staff to ensure the proper infection control protocol is implemented.

Norwegian CFO Mark Kempa said last month that the company “does not expect a straight-line recovery”. He said he has set aside $ 300 million for investments in health and safety, adding that monthly cash consumption is expected to increase as the company begins to mobilize its fleet and staff in preparations for a return. progressive in service. Kempa said the company had $ 2.3 billion in cash, including money set aside for health and safety investments, at the end of the third quarter.