(Bloomberg) -- Royal Caribbean Cruises Ltd. rose to its highest in nearly a year in New York after the company said bookings continue to improve, lifting the shares of competitors as well.
Since the beginning of the year, reservations are running 30% higher than in November and December, Chief Financial Officer Jason Liberty said Monday on a quarterly conference call with investors.
“What we’re seeing continue is a lot of pent-up demand for vacations,” Liberty said. “They’re saving more. They’ve bypassed many of their vacations, and so they’re trying to eye out when we’re going to return to service.”
Shares of Royal Caribbean, the second-largest cruise operator, rose as much as 13% to $88.75, their highest since Feb. 26, 2020. Carnival Corp. and Norwegian Cruise Line Holdings Ltd. also jumped.
The industry shut down nearly a year ago in an abrupt halt over the Covid-19 pandemic.
The company didn’t give a clear timeline for a return to service, and the Centers for Disease Control & Prevention remains in the position of gatekeeper for the industry’s return. But Michael Bayley, chief executive officer of the company’s flagship Royal Caribbean International division, said declining case numbers indicate “we’re getting closer and closer to good news.”
“Booking commentary remains healthy in the out years as customer demand continues to prove somewhat resilient,” Steven Wieczynski, an analyst with Stifel Nicolaus & Co., said in a note.
©2021 Bloomberg L.P.