August 13, 2022

Cruise line shares jump after CDC ends Covid-19 program

Cruise line shares jump after CDC ends Covid-19 program

NEW YORK, US – JULY 10: An aerial view of the cruise ship “Norwegian Joy” sailing over the Hudson River in front of the Manhattan skyline as the sun sets in New York City, United States on July 10, 2022.

Luqman Fural Elibol | Anadolu Agency | Getty Images

Cruise line stocks including carnivalAnd the Royal Caribbean And the Norwegian It rose on Tuesday after the US Centers for Disease Control ended its Covid-19 program for cruise ships.

CDC’s cruise ship program, which It became voluntary earlier this yearIt requires testing all passengers, encouraging vaccinations for staff and passengers and determining specific quarantine procedures in the event of an outbreak.

The CDC said it will still provide guidance for cruise ships handling cases of Covid-19, but companies can now use their own strategies to mitigate the spread of the virus. This means that cruise lines can set their own policies regarding vaccination, testing and quarantine requirements.

While Carnival shares rose about 7% on Tuesday to close at $10.36, while Royal Caribbean Shares gained nearly 6% to $36.36 and Norwegian The shares rose nearly 3.5% to $12.85.

The CDC change is expected to give cruise lines more flexibility, potentially allowing more passengers to board ships and lowering industry costs.

“While we fully expect cruise operators to continue to vaccinate passengers before sailing,” Stephen M. Wichinsky, analyst at Stifel, wrote. “We believe today’s news will give cruise operators more flexibility about including younger individuals.”

A Royal Caribbean representative said the company is waiting for more guidance from the CDC before setting its own policies.

The cruise industry was reeling Since the epidemic started, and recently worked to restore business to pre-2020 levels.