By Dhirendra Tripathi
Investing.com – Carnival (NYSE:CCL) shares jumped more than 5% Wednesday as traders chose to give more weight to its robust outlook for the business and not so much the quarterly loss of $2 billion.
Shares of cruise operators have been surging since last week as they get on with their plans to resume operations in a phased manner. Cruise operators expect Covid-induced pent-up demand to help them in an aggressive rebound once they start sailing again.
Royal Caribbean (NYSE:RCL) rose nearly 5% and Norwegian Cruise (NYSE:NCLH) rose more than 6%.
Cruise operators have submitted their plans to the U.S. Centers for Disease Control and Prevention for permission to resume operations, with a goal of setting sail from U.S. ports by mid-summer.
“During the first quarter of 2021 they (booking volumes) were approximately 90% higher than volumes during the fourth quarter of 2020 reflecting both the significant pent up demand and long-term potential for cruising," President and Chief Executive Officer Arnold Donald said in a filing.
As of February 28, the current portion of customer deposits was $1.8 billion, of which $700 million relates to bookings for the remainder of 2021, the company said.
Cruise liners have been amongst the hardest hit by the restrictions imposed by several countries last year to control the pandemic. But as vaccinations roll out and life at many places returns to normal, there are hopes that travel and leisure businesses will boom.