Frank Del Rio: Norwegian Cruise Line Expects to Sail ‘Sometime in 2020’

Norwegian Cruise Line Holdings, which includes NCL, Oceania Cruises, and Regent Seven Seas, expects to be sailing cruise ships sometime this year.

In an interview on CNBC Thursday, NCLH’s Frank Del Rio told Jim Cramer that the cruise company expects “to sail sometime in 2020,” though he couldn’t give a specific date as the company, like its competitors in the cruise industry, is still waiting on full government approval.

“It would be irresponsible for me to give you a specific date because we still have to gain clearance from the CDC and other government agencies. But we are working shoulder-to-shoulder with them to develop enhanced protocols for everything you can think of,” Del Rio said.

Del Rio revealed that NCLH is working with Dr. Scott Gottlieb, the former commissioner of the Food and Drug Administration, to create those protocols and to ensure to its guests and its travel partners that “cruising is safe.”

He also said that he was happy with the actions Norwegian took when the virus initially broke in mid-March and that they should inspire some faith in its sailings going forward.

“[We] took immediate action when the virus broke. We denied boarding to anyone who came through China, Hong Kong, Macau, and all of Asia. We think that early action really helped to curb the spread, especially among crew members.”

“Customers, travel advisors, and investors, quite frankly took notice of that, that cruising can be safe if done correctly…Today what customers want more than anything else is to know they are going to be safe onboard cruise ships.”

Del Rio’s interview came the same week Norwegian was the subject of reports that its financial situation was untenable. However, this week NCLH announced it had successfully raised enough funds to keep the company confident in operations over the next 18 months, even if the cruising shutdown continues.

Del Rio said customers are still booking cruises despite the COVID-19 pandemic. “It’s hard to believe,” he said, “but today we are only slightly below in load factors compared to where we were this time last year…Our loyal guests are still behind us.”

“We feel very, very good about the future, our customers, and our ability to come back.”

Del Rio also said that the rebooking to cancellation rate during the last two months is “roughly 50-50,” or of the 50% who took the FCC, a little over a third have already booked a cruise for later this year and for 2021. That increase isn’t driven by pricing either, as NCLH’s pricing is only down single digits, Del Rio said.