Carnival says cruise bookings accelerate on pent-up demand

Cruise line yet not taking stance on mandatory COVID-19 vaccinations for travelers

Carnival Corp, said on Wednesday booking volumes for future cruises had increased in its first quarter, as pent-up demand for global travel offers some hope for a turnaround in the sector decimated by the COVID-19 pandemic. However, the world’s largest cruise operator, is currently not taking a position on mandatory COVID-19 vaccinations for passengers before traveling.

Its shares rose 3.9% to $29.64, as investors looked past the company reporting a quarterly loss of nearly $2 billion.

The rapid global rollout of COVID-19 vaccines could jump-start the cruise industry, analysts have said, after a year without sailings virtually halted the business and pushed some companies to the brink of collapse, but a full recovery is not expected for at least a few years.

However, cruise ships in the United States remain under a “no-sail order”, and Carnival has said guidelines on how voyages could resume, which include ensuring all passengers are vaccinated, are “largely unworkable and stood in stark contrast to the approach taken in other travel and tourism sectors.”

The company’s statement comes just a day after rival Norwegian Cruise Line Holdings Ltd said it would mandate travelers be vaccinated under a proposed plan to restart U.S. cruises in July. Norwegian and Royal Caribbean Group have both said they would restart cruises from the Caribbean later this year with vaccinated passengers.

“We continue to closely monitor the evolving situation with vaccines globally,” a Carnival spokesman said in an emailed statement.

The U.S. cruise industry is currently under a “no-sail order” from the Centers for Disease Control and Prevention (CDC). Last week, the agency updated its guidance for the resumption of passenger voyages, which included the need for COVID-19 vaccinations and more frequent reporting of coronavirus infections from cruise operators.

Carnival said bookings during the first quarter ended Feb. 28 were about 90% higher than volumes during the fourth quarter of 2020. Advance bookings for 2022 are stronger than they had been for 2019, the company said.

Carnival ended the first quarter with $11.5 billion in cash and short-term investments, and said it expected to burn cash at an average of $550 million per month in the first half of 2021. (Reuters)