Royal Caribbean Group released its third quarter 2021 financial results, which reflect a $1.3 billion loss while restarting more than half of its ships.

In fact, Royal Caribbean Group was able to get two-thirds of its ships back in operation, although the Delta variant of Covid-19 delayed booking progress.

The company championed a few key statistics from the quarter before diving into its financials:

• Over 500k guests sailed across its five brands, including Royal Caribbean International. Over 1 million passengers are expected before the year ends.
• By the end of 2021, 50 of the 61 cruise ships in the Royal Caribbean Group should be back in service, representing almost 100% of its core itineraries and approximately 80% of worldwide capacity.
• Sailings for 2022 are booked within historical ranges and at higher prices than 2019, even when including future cruise credits (FCCs).
• Guest satisfaction scores and onboard spending per passenger are both at the highest levels in the Company's history.
• The Group expects to be cash flow positive by spring and profitable for the full year 2022.
• Constructive dialogue with the CDC leading to the end of the prescriptive CSO in January.

Third quarter results

Royal Caribbean Group posted a $1.3 billion loss for 2021, compared to a $1.3 billion loss in the third quarter of 2020.

The Company also reported Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the third quarter of 2021 compared to Adjusted Net Loss of $(1.2) billion or $(5.62) per share in the prior year. The Net Loss and Adjusted Net Loss for the third quarter of 2021 are the result of the continued impact of the COVID-19 pandemic on the business.

The good news is 11 more cruise ships returned to service, which means there are now 40 cruise ships across all the Royal Caribbean Group brands operating today. This represents 65% of the fleet capacity have restarted cruises.

The Company also reported Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the third quarter of 2021 compared to Adjusted Net Loss of $(1.2) billion or $(5.62) per share in the prior year. The Net Loss and Adjusted Net Loss for the third quarter of 2021 are the result of the continued impact of the COVID-19 pandemic on the business.

Cruise ships that operated the Group's core Caribbean, Alaska, and Europe itineraries in the third quarter achieved a load factor of 44%. Core itineraries exclude sailings during the early ramp-up period of up to four weeks and also exclude specialized itineraries implemented during the COVID period (e.g., Singapore, Cyprus). 

Total revenues per Passenger Cruise Day in the third quarter was up 12% versus record 2019 levels driven mainly by strong onboard revenue performance. 

Cruise ship plans and capacity

Royal Caribbean Group says it will move load factors up to 65-70% during the fourth quarter.  

The Group expects all ships on core itineraries in the fourth quarter will be cash flow accretive even when including start-up costs.

By the end of the year, the Group expects that 50 out of 61 ships will have returned to service, representing almost 100% of core itinerary capacity and approximately 80% of worldwide capacity. 

The remaining ships are expected to return by the spring of 2022 and return to historical load factors in the third quarter 2022. 

They believe Mainland China cruises will resume in the spring, albeit with lower load factors.

CDC and the Conditional Sailing Order

Royal Caribbean Group highlighted the fact the U.S. Centers for Disease Control and Prevention (CDC) announced a plan to transition the Conditional Sailing Order (CSO) to a voluntary program.

Mr. Fain said of the change, "We are very pleased with the continued and constructive partnership with the CDC and the U.S. government's COVID-19 interagency group."

"This is a great example of how close collaboration between the cruise industry and the CDC results in health and safety protocols that have demonstrated cruising can be one of the safest forms of vacation," Fain continued.

Bookings

While the Delta variant had a negative impact on cruise bookings, Royal Caribbean Group said booking volumes have improved "significantly" since the slowdown.

The Company attracted more bookings in the third quarter compared to the second quarter.  September was particularly strong, with new bookings for 2022 sailings more than 60% higher than the monthly average during the second quarter.

Sailings for the full year 2022 are booked within historical ranges and at higher prices than 2019. 

"As cases have come down, demand has come surging back.  Consumers are showing their resilience and desire to vacation, and the growing affinity of Royal Caribbean's leading brands, ships and crew. Although there are many uncertainties going forward regarding COVID-19, as well as cost and supply chain pressures, we continue our pathway forward and anticipate positive cash flow for the Group by spring of 2022 and generating positive earnings for the full year 2022," said Jason T. Liberty, Executive Vice President and CFO.

As of September 30, 2021, the Company had approximately $2.8 billion in customer deposits.  The comparable figure for the three brands at the same time in 2019 was $3.1 billion. This represents an improvement of about $400 million over the past quarter despite the $300 million of revenue that was recognized during the quarter.  

Approximately 35% of the customer deposit balance is related to FCCs compared to 40% in the prior quarter; a positive trend indicating new demand.  Customer deposits for second quarter 2022 forward sailings are higher than at the same time in 2019.

Royal Caribbean is bringing back some of the perks it had previously altered for its VIP treatment program guests can purchase.

RoyalCaribbeanBlog reader, Teresa McChane, received an email from Royal Caribbean before her Freedom of the Seas cruise this coming weekend with a look at her benefits for purchasing The Key, and there are two notable changes.

First and foremost, the option for early check-in at the cruise terminal has returned.

According to the email, guests who bought The Key can arrive to the cruise terminal between 11:00am - 11:30am instead of at the appointment time they received after checking in for their cruise online.

If passengers that purchased The Key are not able to make the early access window, they should arrive within their appointment time and will receive priority access into the terminal.

There will be a signage for guests who bought The Key at the cruise terminal so they can get their priority access.

In addition, the embarkation day meal is back in the Main Dining Room, which features a welcome lunch provided by Chops Grille.

The embarkation day lunch is available between 12:00pm - 1:30pm.

Finally, Royal Caribbean has also brought back the private debarkation á la carte breakfast, replacing the "grab and go" breakfast option.

A few weeks ago, Royal Caribbean brought back The Key to its ships, but with more restrictive changes than what is shown for this upcoming sailing.

Instead of true early access, guests still had to arrive at their booked arrival time.

Royal Caribbean had also swapped the embarkation day welcome lunch in the main dining room for complimentary room service for the duration of the cruise and 25% off onboard dining purchases.

The complimentary room service  and 25% off onboard dining purchases benefit still remains, even with the welcome aboard lunch offered again.

The price of The Key varies, and starts at $25.99 per day, per person, although there can be discounts available to bring that price down.

All guests over the age of 6 in the same room must purchase The Key.

Royal Caribbean Group announced on Wednesday a new initiative to make its cruise ships as eco-friendly as possible by reducing net zero emissions by 2050.

"Destination Net Zero" is the name of the new program that the company is calling its collective effort.

There are two primary objectives in its pledge to pursue science-based targets:

• Delivery of a net zero emissions cruise ship
• A path to net zero emissions by 2050

A comprehensive decarbonization strategy is behind how Royal Caribbean Group will get there, and executives feel now is the time to get moving on that goal.

"Decades ago, we set out on a course to advance sustainability; our vision now is to realize carbon-free cruising over the next two decades," said Royal Caribbean Group Chairman and CEO Richard Fain.

"Today we are announcing the most important destination of all in our company's history – Destination Net Zero – an ambitious strategy to cut emissions, protect our oceans, and ensure the viability of the hundreds of destinations that our guests and crew members care deeply about."

How they will get there

Over 18 to 24 months, Royal Caribbean Group will develop goals to be validated by the Science Based Targets initiative (SBTi).

The work will begin following the publication of SBTi's marine transport methodology. Science-based targets show companies how much, and how quickly, they need to reduce their greenhouse gas (GHG) emissions to help limit global warming.

The company will set key milestones to ensure they are making progress, one of which will be the delivery of a net zero cruise ship by 2035.

Thanks to optimized hull design and system upgrades such as AC chillers utilizing 30-40% less energy, Royal Caribbean Group has consistently delivered a new generation of ships 20-25% more efficient than their predecessors. 

To reach their goal of net zero emissions, Royal Caribbean Group will pull a lot of levers, including a few already announced. SilverSea Cruises will launch the first hybrid-powered ship set to debut summer 2023, and a wind farm in Kansas will offset up to 12% of the company's scope 1 and 2 emissions per year.

Destination Net Zero's four-pronged approach includes:

1. Modernization of the cruise company's global brands fleet through the introduction of 13 new energy-efficient and alternatively fueled vessels.
    
2. Continued investment in energy efficiency programs for its fleet, including energy saving technologies, enhanced data systems and digitalization.
    
3. Development of alternative fuel and alternative power solutions.
    
4. Optimized deployment and integration of strategic shore-based supply chains.

Royal Caribbean's Halloween sale begins today on its pre-cruise purchases for drink packages, shore excursions and more.

The No Tricks, Just Treats sale is valid on purchases made between October 28 - November 8, 2021.

It applies to all sailings between November 1, 2021 - October 31, 2022.

Here is what is included during the sale:

BEVERAGE: Up to 40% off

• Classic Soda Beverage Package: 30% off onboard prices.
• Classic Soda Beverage Package + VOOM Surf & Stream 1 Device: Discount varies by ship.
• Dasani Water Cans: 40% off onboard prices.
• San Benedetto Water Cans: 40% off onboard prices. (only on. AN, BR, JW, OY, RH, VI, VY, WN)
• Evian Water Bottles: 40% off onboard prices. (excl. RD, VI, VY, WN)
• Deluxe Beverage Package: Discount varies by ship.
• Deluxe Beverage Package + VOOM Surf & Stream 1 Device: Discount varies by ship.
• Refreshment Package: 30% off onboard prices.

SHORE EXCURSIONS: Up to 25% off

• Shore Excursions: Discount varies by ship

INTERNET: Up to 50% off

• The Key: Discount varies by ship.
• VOOM Surf + Stream Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship.
• VOOM Surf Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship.

DINING: Up to 55% off

• Unlimited Dining Package on 3N – 9N sailings: Discount varies by ship

ACTIVITIES: Up to 20% off

• All Access Ship Tour (Excludes GR, RD, RH, VY, WN)

Gifts & Gear: Up to 20% Off

• Anniversary Decorations with Champagne
• Happy Birthday Decorations with Chocolate Cake & Strawberries
• Happy Birthday Decorations with Vanilla Cake & Strawberries
• Inky Beach Set
• Inky Beach Towel (TicTacToe)
• Inky Travel Set
• Red Wine and Cheese
• Royal Caribbean Beach Towel
• Strawberries with Champagne
• White Wine and Cheese

PHOTO PACKAGES: Up to 70% off

• Photo Packages: From 5 - 100 Print and/or Digital Options: Discount varies by ship
• Photo Package: Private Photo Session: Discount varies by ship.
• Photo Package: Picture This Private Studio: Discount varies by ship.

To check if your sailing has this new offer available, log into the Cruise Planner on Royal Caribbean's web site look for any available offers. Keep in mind that not all sailings may see the sale applicable, nor are all offers significantly cheaper than previously posted.

If you spot a better discount on something you already pre-purchased, you should be able to cancel the purchase and then re-purchase the same item under this promotion.

More helpful information

• Should you buy pre-cruise purchases now or wait to buy it onboard?
• 45 ways to save money on a Royal Caribbean cruise
• How much should I budget for a cruise?

Royal Caribbean posted a new video update with the progress being made on the cruise line's next generation cruise ship.

Icon of the Seas is under construction at the Meyer Turku shipyard in Finland, and we have a closer look at  how the ship will be powered by liquefied natural gas (LNG).

This will be the first Royal Caribbean cruise ship to be powered by LNG.

Traditionally, cruise ships are powered by diesel. The advantage LNG has over diesel is it is more energy-efficient and will reduce fuel consumption and emissions.

LNG is considered to be the cleanest-burning fossil fuel available because it has virtually zero sulfur dioxides and particulates, and a significant reduction in nitrous oxides.

Royal Caribbean's overall goal is to become emission-free.

The LNG fuel tank is 307 tons and 90 feet long, and were installed recently into one of the blocks that makes up the new ship. Royal Caribbean says the two LNG fuel takes are the largest in the cruise industry.

In addition, Icon of the Seas will utilize a shore power connection that removes emissions while connected at port.

Icon will have advanced waste heat recovery systems that repurpose heat to be used as energy across the ship.

Additional details about Icon of the Seas largely remain unknown. Royal Caribbean promises, " it will make waves with a mix of innovations and adventures cruising’s never seen before."

According to Royal Caribbean Group SEC filings in April 2021, the unnamed Icon Class ships will have a capacity of approximately 5,600 passengers.

The first of the revolutionary Icon Class is set to make its debut in fall 2023, and two other Icon Class ships are on order. The other two ships will be delivered in 2025 and 2026.

The U.S. Centers for Disease Control and Prevention (CDC) extended its requirements for how cruise ships need to operate due to Covid-19, and the cruise industry has come out in support of the temporary extension.

The extension means the Conditional Sailing Order (CSO) will continue to remain in effect between November 1 and January 15, 2022, but the CDC says it will then expire.

While the CSO was at one time a major thorn in the side of the cruise lines who were eager to restart operations, the CDC began allowing ships to sail in June 2021 and since then, it has largely become a mere formality for ships to be able to sail from all major and minor cruise ports in the United States.

The Cruise Lines Industry Association (CLIA) issued a statement in support of the CDC's decision, as it provides a means for the CSO to transition to a voluntary basis, "Cruising has successfully resumed in the United States, with leading public health measures that have enabled our ocean-going cruise line members to effectively mitigate the risk of COVID-19 amongst cruise passengers, crewmembers and destinations."

"The changes to the Framework for Conditional Sailing Order (CSO), announced today, show that the Biden Administration and the Centers for Disease Control and Prevention (CDC) recognize the cruise industry’s successful resumption of operations. We look forward to demonstrating the industry’s continued leadership in this final phase of the CSO, and to carrying out a smooth transition when the Order comes to an end on 15 January 2022."

In mid-January, the CDC says the CSO will transition to a voluntary program in which participation will be at the discretion of cruise lines.

"CDC wishes to stress that cruise ship participation in any future voluntary program would not be mandated; the scope and parameters of such a program would be subject to further discussion and information sharing; and cruise ship operators would be free to develop alternative pathways of detecting, mitigating, and controlling the spread of COVID-19 onboard cruise ships."

CLIA believes the industry is committed to a safe approach to cruising once that occurs, "The health and safety of cruise passengers, crewmembers and destinations remain the industry’s highest priority."

"CLIA ocean-going cruise line members will continue to be guided by science and the principle of putting people first as we work with the Administration and the CDC to expand on our progress and build additional confidence in cruising as one of the safest vacation options, during the pandemic and beyond."

In a statement to RoyalCaribbeanBlog, a Royal Caribbean Group spokesperson also supported the CDC's move, "As our phased approach to healthy return to service continues fleetwide, we are pleased by the decision of the CDC to end the Conditional Sail Order after a two-month extension until January 15, 2022."

"Royal Caribbean Group will continue to operate in accordance with protocols that prioritize the health and safety of our guests, crews and the communities we visit, as we have done successfully from the United States since June."

What does the Conditional Sailing Order require?

In a nutshell, the CSO laid out a phased approach for cruise ships to restart operations from the United States through a series of steps in order to get approval to sail.

Introduced in October 2020, the full set of rules were not fully unveiled until spring 2021, but they provided cruise lines with requirements to ensure their ships would not put crew, passengers or communities served by the ships under unnecessary risk to Covid-19.

Cruise lines had the choice of mandating at least 95% of their passengers and 98% of their crew members be fully vaccinated in order to restart cruises quicker, or run test cruises with volunteer passengers to ensure health protocols onboard were effective.

Cruise lines like Norwegian Cruise Line and Celebrity Cruises opted to mandate the vaccine, while Royal Caribbean and Disney Cruise Line chose the test cruise path in order to allow unvaccinated children onboard.

Royal Caribbean began test cruises in June 2021, and has successfully launched every one of its ships that has had to conduct a test cruise.

Simulated voyages applied a variety of new cruise line policies and rules to ensure they mitigate any potential spread of a virus onboard. Besides testing protocols, Royal Caribbean found the test cruises a good opportunity to prep the ship to return to service after many months of being shutdown.

The CDC now believes the protocols devised under the CSO has helped avert concerns it had earlier, "cruise lines, with CDC assistance, have resumed passenger operations and successfully developed and implemented health and safety protocols to manage COVID-19 that have averted overwhelming onboard medical facilities and burdening shoreside hospital resources"

Why the CDC extended the Conditional Sailing Order

RoyalCaribbeanBlog reader smokeybandit reacted to the temporary extension by asking, "I want to know what difference another 75 days makes," which echoes many other cruise fans concerns about the CDC decision.

In the 54-page document the CDC issued regarding the CSO extension, it justified the temporary extension because of the upcoming winter season and anticipated increase in passengers and ships sailing from the United States.

"The winter season (November through January) has historically been the most active cruising season in the Caribbean and Central America, involving travel to countries currently listed by CDC as being under COVID-19 travel health notices where cruise ship travelers may be at increased risk for acquiring and subsequently introducing COVID-19 variants into the U.S.

"Additionally, cruise ship operators have informed CDC of their intended plans to increase the number of ships operating in U.S. waters this fall and winter."

The CDC added it was not "feasible" to pause the CSO in order to get a comment period, noting it would be "impracticable and contrary to the public interest."

The Bahamas will extend its order requiring cruise ship passengers be fully vaccinated if they are above the age of 12 until next year.

Since September 1, 2021, The Bahamas enacted emergency powers requiring only cruise ships be allowed into The Bahamas if everyone over the age of 12 is fully vaccinated, including private islands.

The order is set to expire on November 1, but it now appears it will be extended.

Tourism, Investments and Aviation Minister Chester Cooper told The Tribune that the Bahamian government will look to extend the policy until next year.

"We are taking action to extend that until 2022," Mr. Cooper said before going to a Cabinet meeting.

"We will be looking at it closely moving forward. We are actively in conversations with our various cruise partners.

"We believe vaccination is the right approach in order to be able to attract tourists to our shores in a balanced and responsible way."

Under the order, cruise ships visiting The Bahamas must ensure everyone who is at least 12 years old or older be fully vaccinated.

The order was first added by Bahamian Prime Minister Dr. Hubert Minnis, but the new Prime Minister of The Bahamas, Philip Davis, supports extending it.

As a result of the order, cruise lines changed their protocols to require everyone above the age of 12 to be fully vaccinated on sailings from Florida. Prior to the Bahamian law, Royal Caribbean cruises from Florida had made exceptions for unvaccinated adults to sail.

Royal Caribbean was already requiring proof of vaccination from passengers 12 and older sailing from other U.S. ports. 

Travelers unable to show proof of vaccination are unable to sail.

Royal Caribbean not only visits Nassau, but operates a private island that is visited by so many of its ships operating in the region, Perfect Day at CocoCay.

Hours after the U.S. Centers for Disease Control and Prevention announced an extension of the Conditional Sailing Order, Royal Caribbean released its health protocols for cruises departing the United States in November 2021.

Guests booked on November cruises received an email with the health rules they can expect if sailing on a cruise ship in November.

Protocols have been released for ships sailing from the United States, as well a separate policy for ships sailing from Puerto Rico. You should, refer to Royal Caribbean's protocols online.

Here is the list of protocols for ships sailing from the United States (excluding Puerto Rico), including government mandates and CDC pre-cruise testing requirements. 

Vaccinations

All guests 12 and older must be fully vaccinated at least 14 days before sailing.

Testing

Required Pre-Cruise Testing: Guests will need to meet the new requirements recently issued by the U.S. CDC.

Vaccinated guests 12 years and older are required to present a negative COVID-19 Test Result (antigen or PCR) for a test taken no more than 2 days prior to the sailing's departure date and before their arrival to the terminal.

Unvaccinated kids age 2 to 11 must show a negative test result for a PCR or antigen test taken no more than 3 days before boarding day. Kids’ pre-cruise test cannot be taken on boarding day, because that may affect the sample taken during the kids’ test at the terminal.

No testing required for guests under age 2.

Pre-cruise tests are at the expense of the guest sailing, as well as scheduling.

Royal Caribbean recommends guests use the at-home test they recently approved for use and now sell directly to passengers via RoyalCaribbean.com/HomeTestKit

Kids Age 2-11 Years: Additional Testing

In addition to the pre-cruise test, kids will take one or two more tests. 

At the Terminal:  Unvaccinated guests ages 2 to 11 years are required to take a PCR test for COVID-19 when checking in at the terminal. Registration details for this test will be sent via email in advance. This test is complimentary.

Prior to Disembarking: Unvaccinated guests ages 2 to 11 will take a complimentary antigen test prior to debark. Depending on sailing length, there may be additional testing. Registration details will be provided onboard.

Guests under 2 years of age will not be tested.

Masks

Masks are required in the terminal, in select locations inside the ship, and may be required at various destinations. Guests under 2 years old don’t need a mask. 

Masks are NOT required to be worn:

• In open-air areas of the ship, unless you are in a crowded setting.
• In the pool or any activity where they may become wet.
• At venues designated for vaccinated guests only, such as select bars, lounges, restaurants and shows.
• In your stateroom when you are with your traveling party.
• While visiting our private destination, Perfect Day at CocoCay, unless you are in a crowded setting.
• By any guest under the age of 2.

Masks ARE required to be worn:

• While indoors in public areas of the ship, unless seated and actively eating or drinking.
• While visiting public ports of call, where local regulations may require them.

Some venues and nightlife events will be for vaccinated guests age 12 and up, only. Masks won't be required in these venues. Vaccinated parents are invited to enjoy these experiences while their kids not present.

Dining

For Main Dining, Royal Caribbean will designate areas for everyone, including parents and unvaccinated children, and areas for vaccinated parties only.

My Time Dining will not be available to parties that include unvaccinated guests. Some specialty restaurants will be open to everyone, while others will be for vaccinated parties only. 

Other venues

The ship’s venues are set up to easily allow for physical distancing and there will be signage to guide passengers.

Theaters and activity venues will offer spaced seating and more showtimes. Some activities, showtimes, or seating areas will be reserved for vaccinated guests only.

The Fitness Center has operating hours for everyone as well as hours reserved for vaccinated guests only.

Spa services, except those offered in treatment rooms, are available to everyone.

Shore Excursions

Fully vaccinated parties may book a shore excursion or visit most ports freely — with the exception of those listed below, which will require tours for all guests who wish to go ashore, regardless of their vaccination status.

• St. Lucia (November visits)
• Barbados (November visits)
• St. Kitts (November visits)
• Antigua (November visits)

Families traveling with unvaccinated kids must purchase a local tour through Royal Caribbean if they wish to go ashore. This applies to all ports of call except Perfect Day at CocoCay, and Port Canaveral, Florida. 

Cruises from Puerto Rico

Explorer of the Seas is scheduled to restart cruises from San Juan, Puerto Rico in November and there are slightly different protocols for these sailings.

I've noted the major differences for cruises from Puerto Rico, but otherwise the same protocols for U.S. sailings apply.

For guests above the age of 2, Puerto Rico requires a negative PCR or antigen Covid-19 test result for certain travelers to enter depending on their vaccination status and point of origin.

If you’re flying in from the U.S.

• Vaccinated guests have no testing requirement to enter Puerto Rico.
• Unvaccinated kids age 2 to 11 must show a negative result for a PCR or antigen test taken within 72 hours prior to arriving at Luis Muñoz Marín International Airport in San Juan.

If you’re flying in from an international country

• All travelers age 2 and up, regardless of vaccination status, must show a negative result for a PCR or antigen test taken within 72 hours prior to arriving at Luis Muñoz Marín International Airport in San Juan.

If you are already in Puerto Rico
Puerto Rico does not require a test from you.

Embarkation Day

To board the ship, you will need to bring a negative PCR or antigen test result to the cruise terminal. It can be the same result you used to enter Puerto Rico, provided you time it right.

• Vaccinated guests age 12 and older must show a negative result for a PCR or antigen test taken no more than 2 days before boarding day.
• Unvaccinated kids age 2 to 11 must show a negative test result for a PCR or antigen test taken no more than 3 days before boarding day. Kids’ pre-cruise test cannot be taken on boarding day, because that may affect the sample taken during the kids’ test at the terminal.
• Guests under 2 years of age do not need to complete a pre-cruise test.

Kids Age 2-11 Years: Additional Testing

In addition to the pre-cruise test, unvaccinated kids will take two more tests. Royal Caribbean’s test provider will administer these, at no cost to guests.

At the Terminal
Kids will take a complimentary PCR test when checking in at the terminal. Registration details will be sent via email in advance.

Prior to Disembarking
Kids will take a complimentary antigen test onboard before the cruise ends. Vaccinated guests who require a COVID-19 test for re-entry into their country may receive one onboard as well. Guests will be notified onboard about how to register for this test.

Guests under 2 years of age do not have test requirements to board the ship.

With less than week left in the life of the U.S. Centers for Disease Control and Prevention (CDC) policy that regulates how cruise ships can operate from the United States during the Covid-19 pandemic, the federal agency has temporarily extended it for an additional two and a half months.

The CDC has temporarily extended the Framework for Conditional Sailing Order (CSO) until January 15, 2022, with minor modifications. 

The CSO is the CDC's phased approach to allowing cruise ships to resume operations from the United States. There are phases each vessel must go through before it can be approved to sail again with passengers from U.S. waters.

Many cruise ships have been able to resume operations from the United States since summer 2021, including many from Royal Caribbean.

It is being called a "temporary extension", and will commence once the current CSO expires on November 1, 2021.

CDC Director Rochelle Walensky signed the Temporary Extension & Modification of the CSO on October 25, 2021.

The Temporary Extension & Modification of the CSO shall remain in effect until the earliest of

• The expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency;
• The CDC Director rescinds or modifies the order based on specific public health or other considerations; or
• January 15, 2022 at 12:01 am EDT.

Once the Temporary Extension & Modification of the CSO expires in January, the CDC said it intends for the the program to shift to a voluntary basis, where cruise lines and other stakeholders will work together without a federal mandate to do so to ensure proper protocols are followed.

The original CSO was issued on October 30, 2020 as a response to Covid-19 and the perceived threat of it spreading on cruise ships.

According to the CDC, the rationale for extending it has to do with the threat the virus still poses today, "considering the continued spread of the Delta variant, emergence of other COVID-19 variants of concern, breakthrough cases among the fully vaccinated, and possible additional surges of cases and deaths, CDC has determined a temporary extension of the CSO is necessary for foreign-flagged cruise ships operating on international itineraries."

The CDC did concede in its document it intends to let the CSO expire once January 15 passes, "After the expiration of this temporary extension, CDC intends to transition to a voluntary program, in coordination with interested cruise ship operators and other stakeholders, to assist the cruise ship industry to detect, mitigate, and control the spread of COVID-19 onboard cruise ships."

The extension has few changes to what the CSO had in it originally, although the CDC did take away a few restrictions and requirements including:

• Removed language referring to cruise ship operator protocols as “unproven and untested”
• Removed requirement to include any CDC travel advisory, warning, or recommendation relating to cruise travel in marketing material
• Removed requirement to limit voyage to 7 days
• Removed requirement for monitored observation period of passengers prior to embarking
• Modified to state that voyage may be ended and further action taken if a ship meets “red ship criteria” under Technical Instructions for Crew
• Removed previous requirement that cruise ship operator must immediately end voyage, cancel future voyages, and return to port if COVID-19 identified onboard.

In addition, the CSO adds that its instructions only apply on a voluntary basis for ships  arriving in, located within, or departing from a port in Florida, due to the Preliminary Injunction Order, entered by the U.S. District Court for the Middle District of Florida on June 18, 2021.

Last week, Royal Caribbean International President and CEO Michael Bayley hinted at the CSO becoming more guidance than regulation, "One of those next steps could be that the Conditional Sailing Order would just expire, and we would continue as we are voluntarily working with the CDC and operating with various protocols and guidelines that have been recommended."

Mr. Bayley believes the success cruise lines have had in getting back to service has been a result of the work with the CDC, "We've got 15 ships operating and the protocols are really working."

"Everything is operating extremely well, and that really was only possible through a lot of collaboration with the CDC and working with them and other health authorities around the world."