Norwegian Cruise Line shares (NYSE:) gained 9.5% to close at $20.03 in its most recent trading session. It expects to recover from its losses due to the pandemic and to be profitable by 2022. However, the newly identified COVID-19 omicron variant could depress the company’s growth trajectory as governments re-impose travel restrictions. So, will NCLH’s shares soar, or will they retreat on omicron concerns? Continue reading.
The shares of a Miami-based cruise company Norwegian Cruise Line Holdings Ltd . NCLH’s stock prices dropped 23.8% and 21.2% respectively over the past one year. The stock currently trades below its 200-day, 50-day moving medians. Cruise line companies were hard hit by COVID-19, which saw billions of dollars disappear from their accounts as cruise ships were forced to dock in ports because of travel restrictions.

Concerns about the possible impact of COVID-19’s omicron variant on global economies led to stocks in cruise lines, NCLH included, falling last week. As governments tighten travel restrictions and increase testing requirements, investors were worried about a possible travel pullback. NCLH stock recovered in the last trading session and gained 9.5% to settle at $20.03. News that the COVID-19 variant may cause milder symptoms than the previous COVID-19 strains fueled the rally. But, the World Health Organization said that it was too soon to know the exact severity. “There was initial reports that it tended to be more mild, but it’s really too soon,” said Maria Van Kerkhove, WHO’s technical lead on COVID-19.

NCLH had previously predicted that it would be profitable in the second quarter of 2022. This was because cruise operators were recovering from the pandemic through increased demand for leisure travel, and the vaccination program. NCLH could have to wait longer to recover its losses, and possibly lose more of its current vaccines, depending on whether the Omicron variant is driving another COVID-19-wave or if they are less effective.

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