Tag Archives: Cunard Line

Carnival is selling 6 cruise ships after a $4.4 billion loss, a sign of the industry’s bleak future in the coronavirus pandemic

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Princess Cruises Coral Princess
The Coral Princess, part of Carnival Cruises’ Princess Cruise line. Princess Cruises
  • Carnival Cruises, which includes brands such as P&O, Princess Cruises and Cunard, is to sell 6 ships amid a downturn caused by the coronavirus crisis.
  • The industry has been hammered by COVID-19 after multiple outbreaks occurred at sea, and ports around the world closed to cruise ships. 
  • Carnival said it lost $4.4 billion in the past three months and doesn’t know when it can resume normal operations.

Carnival is planning to sell 6 of its cruise ships after reporting a loss of $4.4 billion in the second quarter of 2020, as the coronavirus crisis continues to hammer the cruise industry.

The company, which includes major cruise lines such as Cunard, P&O and Princess Cruises, reported on Thursday that it was “accelerating” planned sales of the ships.

It reported a massive drop its revenues in the three-month period to May 31, taking in $700 million, a fraction of its $4.8 billion revenues for the same period in 2019, The Guardian reported.

The company said it was “unable to definitively predict” when cruises will back to normal, making it impossible to make an earnings forecast.

All its cruises were suspended in mid-March after onboard outbreaks were reported. Across the industry, by March 25 there had been coronavirus outbreaks on 36 cruise ships worldwide, as Business Insider reported.

Although Carnival has offered customers the chance to pause their bookings for a future date, half of them requested a cash refund, the company said.

Meanwhile, administration and keeping ships afloat still cost the company $250 million a month.

An estimated 21,000 ship staff are still stuck on board 49 ships which cannot dock due to governmental restrictions, the company said.

Cunard extends cancellations until November

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Cunard extends cancellations until November

Cunard is further extending the cancellation of cruises until November, blaming the continued impact of Covid-19.

Flagship Queen Mary 2 and Queen Victoria will have sailings cancelled until November 1 and Queen Elizabeth until November 23.

The extension follows the sister brand extending its pause in operations until October 15.

Cunard will be communicating with all passengers, and their travel agents, who are booked on affected voyages.

Passengers booked on cancelled cruises will automatically be given a 125% future cruise credit which can be redeemed against any new booking made by the end of December 2021 on any voyage on sale at the time of booking.

Cunard president Simon Palethorpe said: “With many differing restrictions across countries, people’s ability to move freely and safely across borders remains seemingly someway in the distance.

“For Cunard, where we celebrate having a truly international mix of guests and sail all over the world, this becomes particularly impactful. We also need to better understand the implications Covid-19 will have onboard our ships.

“We are therefore working, at the highest level possible, with government bodies, including the US Centers for Disease Control and Prevention – the CDC – and Public Health England, as well as the industry collective body – Clia – and other expert medical professionals to review every aspect of a holiday with us.”

He added: “Whilst we have always taken pride in having the highest levels of health and safety we are looking at enhanced protocols across all aspects of ship life and experiences onshore.

“We will only return to service when we have a comprehensive restart protocol with the stamps of approval and accreditation from the most trusted and informed sources.”

Carnival Corporation agrees $3bn in borrowing as cruises halted

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Carnival Corporation is to borrow $3 billion under a credit agreement for six months as the coronavirus crisis triggered a shutdown of global cruise operations.

Tapping the credit facility will increase the group’s cash position and “preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak”.

The proceeds from the borrowings will be available to be used for working capital, general corporate or other purposes, the corporation said.

The move to bolster the world’s largest cruise company’s financial position came as its UK brands, P&O Cruises and Cunard, suspended operations until April 11 after other brands such as Princess Cruises paused operations.

Carnival Corporation said: “Due to the spread and recent developments, including growing port restrictions around the world, related to the Covid-19 outbreak, the corporation previously announced a voluntary and temporary pause of its fleet cruise operations by its continental Europe and North American brands.

“Subsequently, the corporation implemented a temporary pause of its global fleet cruise operations across all brands. Each brand has separately announced the duration of its pause.

“Significant events affecting travel, including Covid-19, typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions.

“The corporation believes the ongoing effects of Covid-19 on its operations and global bookings will have a material negative impact on its financial results and liquidity.

“The corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing.

“Given the uncertainly of the situation, the corporation is currently unable to provide an earnings forecast, however, we expect results of operations for the fiscal year ending November 30, 2020, to result in a net loss.”

The group’s cruise lines operate 105 ships with 16 new vessels due to be delivered by 2025.