Why Norwegian Cruise Lines Rose 12.5% in April
Shares of Norwegian Cruise Line Holdings (NYSE: NCLH) rose 12.5% in the month of April, according to data from S&P Global Market Intelligence. The cruise line got a double dose of good news: the Centers for Disease Control and Prevention held talks with the CEOs of all major cruise lines in the middle of the month, and as a result of the communication, the CDC stated that cruising could start from U.S. ports as early as mid-July, as long as cruise companies adhered to the CDC's Framework for Conditional Sailing Order. In addition, the company received a positive report from sell-side analysts at Goldman Sachs.
At the beginning of April, the date for cruise resumption from U.S. ports may have seemed further off than July. The CDC had originally proposed a gradual, phased-in approach to resuming cruising from U.S. ports. However, the pace of U.S. vaccinations has accelerated and COVID-19 case numbers have fallen. As a result, the CEOs of all three major cruise lines met with the White House COVID-19 response team and the CDC in mid-April, making their case for a quicker resumption of cruising, given progress on vaccinations and the companies' own implementation of safety protocols. At the end of April, the CDC clarified its checklist steps and guidelines for a potential July reopening, should the cruise lines reach compliance.
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Source Fool.com
