Big Cruise Companies Burning Through $1 Billion a Month

Posted on 12 August, 2020 by Spacejunkie2

https://www.cruiseindustrynews.com/

Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are burning through over $1 billion per month without revenue-generating cruises in service.

According to the 2020 Cruise Industry News Annual Report, the three companies account for approximately 73.8 per cent of the global cruise market share.

Carnival Corporation said that during its pause in guest operations, the monthly average cash burn rate for the second half of 2020 is estimated to be approximately $650 million per month.

At Royal Caribbean Cruises, the company said it estimates its cash burn to be, on average, in the range of approximately $250 million to $290 million per month during a prolonged suspension of operations.

Norwegian Cruise Line Holdings, which has the smallest fleet of the three companies, said its cash burn is approximately $160 million per month during the suspension of operations. The average cash burn per ship per month is $5.7 million

Carnival Corp. shedding two more ships

Posted on 1 August, 2020 by Spacejunkie2

Carnival Corp. recently sold the Costa neoRomantica to Celestyal Cruises.

Carnival Corp. will dispose of two additional ships in the next 90 days, on top of the 13 that the company had said it would sell.

The company did not say what two ships would go.

Carnival said earlier this month that it would shed 13 ships and defer five of the nine newbuilds it was scheduled to receive this year and next, representing a nearly 9% reduction in current capacity.

Since June, the company has sold or agreed to sell two Carnival Cruise Line Fantasy-class ships, four Holland America Line ships, two Costa Cruises vessels and one P&O Cruises ship.

“These decisions are intended to align the fleet with the expected phased restart of guest cruise operations while also generating cost savings,” Carnival said.

Norwegian Cruise Line Holdings postpones return until November

Posted on 1 August, 2020 by Spacejunkie2

Norwegian Jade

Norwegian Cruise Line Holdings’ three lines – Norwegian Cruise Line, Oceania and Regent Seven Seas Cruises — will not sail until November.

NCLH is the latest cruise company to push back the suspension of sailings beyond the Centers for Disease Control and Prevention’s No Sail Order through Sept. 30.

Most of the major cruise lines serving the North American market have extended their pause to conform to the CDC order, including the Royal Caribbean Group brands, Carnival Cruise Line and MSC Cruises. Princess recently extended its suspension of nearly all cruises through mid-December, and many Holland America ships are not slated to set sail until mid-October or November.

Windstar Cruises recently pushed back its Tahiti sailings, which are to be the line’s first cruises to resume service, from Sept. 10 to Oct. 15, to align with the CDC order.