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Yahoo Finance Live takes a look at Royal Caribbean Cruises stock as it lowers its standards for COVID testing and demand has not returned to pre-pandemic capacities.
- My play today is Royal Caribbean. Shares selling off on the news that the cruise line started a $900 million bond offering to restructure some of its short-term debt. Now, this industry was forced to take on a significant amount of debt during the pandemic after ships were docked for months because some-- people simply could not go on cruises. Now, as of the end of June, Royal Caribbean had about $18 billion in long-term debt.
The news today comes as the cruise lines do struggle to regain their footings. They have seen, at least, more and more interest from bookings. But we're still waiting to get back to those pre-pandemic levels consistently.
Just last week, Royal Caribbean loosened their COVID testing rules. Vaccinated guests will no longer have to test on cruises that are less than six nights. I don't know, Dave, whether or not this is really gonna move the needle too much, but it does give the industry a little bit more freedom.
DAVE BRIGGS: You know, a little bit. The CDC rulings were nice. But largely speaking, we've seen this industry rise together and sink together. And right now, they are sinking because people are just not returning. You mentioned, one, but the other of the big three, Carnival is down 3% on the news. And they're down 59% year to date. And Norwegian down 3% on the news. And they are down 47% year to date. So they all sink together.
And it's just the demand is not coming back. They are on dramatic sales across the board. But people haven't made that return to cruise ships yet. Maybe if we saw airfares stay high, but they, too, are coming down which doesn't help this industry at all.