Miami Cruises

Cruise industry sails back into summer at U.S. ports

CNBC’s Seema Mody joins ‘Closing Bell’ to discuss cruises returning to U.S. ports. Royal Caribbean’s Celebrity Edge will be the first cruise to set sail from an American port in over 15 months. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

After a 15-month, pandemic-induced hiatus, cruising has returned to America.

Royal Caribbean’s Celebrity Edge is less than 24 hours away from setting sail off the coast of Florida, the first passenger cruise from a U.S. port since the Covid pandemic shuttered the industry’s operations across the globe last year.

“We’ve waited so long for this moment, and it’s here, and it’s magnificent,” Royal Caribbean CEO Richard Fain said in an exclusive interview Friday on CNBC’s “Squawk on the Street.”

The Celebrity Edge is running at 36% capacity to allow for social distancing. Still, that’s nearly 1,100 passengers who will set sail Saturday from Port Everglades, Florida.

All crew are 100% vaccinated, and nearly all passengers are vaccinated, with the exception of two adults and 24 kids under the age of 16, the company said. It’s now outfitted with a larger medical unit that has two doctors and three nurses, plus extra intensive-care unit beds and ventilators.

“We want them to start slow, you know, we haven’t been operating for 15 months,” Fain said. “Like anything else we want to start slowly and build up, give people a chance to practice, give people a chance to go back into the experience.”

Celebrity Edge is no longer requiring passengers to be vaccinated after a Florida court temporarily blocked the CDC’s order barring cruises from U.S. ports. Those who are unvaccinated will be subject to additional restrictions and the cost of Covid testing, Fain said. Health experts say that could give people an incentive to get vaccinated before taking a cruise.

Fain, along with the broader cruise industry, have been fighting for survival for more than a year after the U.S. and other nations suspended operations to contain Covid outbreaks spreading aboard ships. Every major cruise line has raised billions of dollars in debt and issued stock to stay afloat.

Cruise lines are hoping to get back to pre-pandemic sailing volume as the Centers for Disease Control and Prevention eases its restrictions on the industry.

“I see the untapped demand, the people who are really anxious to get back into the sea, I see that as very strong,” Fain said. “In fact, we’re overwhelmed with people calling, clearly want to get back and go into normalcy.”

“People are tired of being cooped up at home. They want to get out, and they’re booking accordingly,” he added.

However, Covid continues to be a challenge. On Thursday, Royal Caribbean disclosed that two kids tested positive on board the Adventure of the Seas.

Fain said it is unrealistic to think ships will sail 100% Covid free.

“There will be cases on board cruise ships,” he said, adding, “the important thing is that we make sure that they’re isolated cases and that they don’t become an outbreak.”

Fain said Royal Caribbean knows how to isolate travelers if someone gets sick and that most everyone on board its ships will be vaccinated.

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