NEW YORK, USA – JULY 10: An aerial view of the cruise ship “Norwegian Joy” sails the Hudson River off the Manhattan skyline as the sun sets in New York City, USA, on July 10, 2022 .
Lokman Vural Elibol | Anadolu Agency | Getty Images
Shares of cruise lines such as Carnival, Royal Caribbean and Norwegian rose on Tuesday after the U.S. Centers for Disease Control ended its Covid-19 program for cruises.
The CDC’s cruise program, which volunteered earlier this year, required testing for all passengers, encouraged vaccinations for staff and passengers, and described specific quarantine procedures in case of an outbreak.
The CDC said it would still provide guidance for cruise ships handling Covid-19 cases, but that companies can now use their own strategies to mitigate the spread of the virus. This means that cruise lines can make their own policies regarding vaccination, testing and quarantine requirements.
Shares of Carnival rose 7% to $ 10.35 in the afternoon, while shares of Royal Caribbean rose 6% to $ 36.54 and shares of Norway rose 4% to $ 12.88 dollars.
The CDC change is expected to give cruise more flexibility, which could allow more passengers on ships and reduce costs for the industry.
“While we expect cruise operators to continue to force passengers to get vaccinated before sailing,” wrote Steven M. Wieczynski, an analyst at Stifel. “We believe today’s news will give cruise operators more flexibility when it comes to the inclusion of younger people.”
A Royal Caribbean representative said the company is waiting for more guidance from the CDC before setting its own policies.
The cruise industry has been faltering since the pandemic began and, more recently, has worked to bring the business back to pre-2020 levels.