Posted on 09/25/2020 2:07:21 PM PDT by Capt. Tom
At the onset of the pandemic, many investors wrote the cruise ship industry off for good but some operators like Norwegian Cruise Line (NYSE:NCLH) are looking to climb back on board. Companies in the industry faced an existential crisis this year with ships harbored at the port for months on end, customers demanding refunds and lawsuits costs piling up during a period of high uncertainty. This pushed Norwegian Cruise Line stock to new lows.
On March 14, the Centers for Disease Control and Prevention (CDC) issued a no-sail order for all cruise ships stating that it was one of the key areas for the spread of the virus. But with the order set to expire on Sept. 30, ...
Like many of its peers in the travel and leisure sector, Norwegian Cruise Line, a company worth over $5 billion saw its revenue drop by 80% this year. Its year-to-date revenue stands at just $1.3 billion compared to $6.46 billion in 2019. As the rest of the world approaches a new normal, the future of Norwegian Cruise Line still remains a burning question.
The bad PR, coupled with zero revenue, put operators like Norwegian Cruise Lines in a bad position. The cruise operator entered the year on a bright note and hoped to hit record revenue and earnings for the year. But once the pandemic spread across the globe, it soon became a distant dream.
Norwegian Cruise Line, which is smaller than Royal Caribbean (NYSE:RCL) and Carnival Cruises Corp (NYSE:CCL), may face the longest road to recovery.
Norwegian Cruise Line may have seen zero bookings this year but the company hoped to make a comeback in 2021. However, with a second wave of cases creeping its ways across the globe, the predictions now seem overly optimistic.
(Excerpt) Read more at investorplace.com ...
In a few days the CDC's no- sail order will expire and the CDC will decide on its next NO-Sail Order.
If the CDC extends it another 3 months Norwegian Cruise line may have to reorganize.
Many of us Freepers have sailed on NCL.-Tom
The co-founder of NCL, Knut Kloster, died last Sunday.
And yet, airline are flying passengers cheek by jowl. I was on a Spirit flight yesterday that was completely full.
I have always felt that they really needed to work on their advertising campaign.
“Cruise like a Norwegian!” brings to mind being handed a shield to mount on the side of the boat, manning an oar, being whipped by a Viking, and rowing with other slaves in time to a beating drum pounded by a one-eyed Berserker.
I’ve been on two Carnival cruises with my wife, enjoyed them both immensely, and never had to row a boat once...
Although I might be tempted by a “Sack the village” excursion...
:{D>
Not surprised to hear that about Spirit. There is no way they would do anything to increase costs or customer experience. I was on Delta earlier this week and they are keeping it to 2/3 capacity. (Middle seats empty)
Least favorite of those I’ve cruised on, however the bartender I befriended was a blast. All the lines are hurting. I know it will be a while before I go anywhere that requires a flight or ship to get to destination.
A lot of airlines like Delta, American, etc. have been bankrupt before, but they get bailed out. Foreign flagged Cruise ships don't get bailed out, so they are more vulnerable to bankruptcies.
I am booked with NCL for January and November of 2021. They are a business providing a service in a competitive environment. We use them because it fits us. #Let’s Cruise!
I think the really big cruise companies like Royal Caribbean and Carnival will survive, mostly by mothballing and/or retiring smaller, older ships.
I expect finding places that will let them into port/letting passengers disembark will become even harder.
The cruise lines may be well served to address the treasonous snakes at the CDC personally.
Carnival is doing that right now, and they have money in the bank plus borrowed money to survive.
If the CDC extends the no-sail period for a few months it might be enough to put NCL into bankruptcy. (reorganization, or being absorbed by other cruise lines.)
WE should know what the CDC is going to do in a few days. -Tom
Amazing they had any revenue at all. Who would want to be essentially imprisoned with a bunch of strangers?
I call Carnival line the Disease line for their notorious epidemics.
Cruise ships are foreign flagged because of the Jones Act, not because they want to be. A classic example of a law with unintended consequences.
I think that was the episode where Rodney Dangerfield guest-starred and was hosing Cruise Director Julie.
That is only a part of it.
By being foreign flagged; they don't have to put up with expensive American union workers, and have to worry about strikes etc.
They also avoid many of our taxes; and our litigious society who are constantly suing when things go wrong.
I'm sure they have other reasons. -Tom
I would think the Cruise lines are glad their ships are not American Flagged and subject to the whims of our CDC.
The CDC may be able to shut them down in this country which will hurt them economically, but eventually they will have the rest of the world for cruising. -Tom
No one is imprisoned with a bunch of strangers. Have you ever been on a cruise?
I despise Spirit and will never ever have to use them again.
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